Boston Capital Tax Credit Fund III LP

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, D4pE//hOjOsVlUpQ39hiOvZ6Pi5ccBT/s5RAGKOknrGNDwm5GR9XuNcIqSHqyHXB O6x2EmRiHaNkmf7W828XMw== 0000950135-06-007565.txt : 20061221 0000950135-06-007565.hdr.sgml : 20061221 20061221113308 ACCESSION NUMBER: 0000950135-06-007565 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20060331 FILED AS OF DATE: 20061221 DATE AS OF CHANGE: 20061221 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON CAPITAL TAX CREDIT FUND III L P CENTRAL INDEX KEY: 0000879555 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF APARTMENT BUILDINGS [6513] IRS NUMBER: 521749505 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21718 FILM NUMBER: 061292013 BUSINESS ADDRESS: STREET 1: ONE BOSTON PLACE, SUITE 2100 STREET 2: C/O BOSTON CAPITAL PARTNERS INC CITY: BOSTON STATE: MA ZIP: 02108-4406 BUSINESS PHONE: 617-624-8900 MAIL ADDRESS: STREET 1: ONE BOSTON PLACE STREET 2: SUITE 2100 CITY: BOSTON STATE: MA ZIP: 02108-4406 10-K 1 b61524bce10vk.htm BOSTON CAPITAL TAX CREDIT FUND III LP Boston Capital Tax Credit Fund III LP

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K


þ		Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended March 31, 2006 or


o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-21718

BOSTON CAPITAL TAX CREDIT FUND III L.P.

(Exact name of registrant as specified in its charter)


Delaware		52-1749505
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


One Boston Place, Suite 2100, Boston, Massachusetts		02108
(Address of principal executive offices)		(Zip Code)

Registrants telephone number, including area code (617)624-8900
Securities registered pursuant to Section 12(b) of the Act:

Securities registered pursuant to Section 12(b) of the Act:
Title of each class — Name of each exchange on which registered
None

Securities registered pursuant to Section 12(g) of the Act:

Title of class
None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes o No þ

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes o No þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes o No þ

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o Non-accelerated filer þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No þ

DOCUMENTS INCORPORATED BY REFERENCE

The following documents of the Fund are incorporated by reference:


Form 10-K
Parts		Document
Parts I, III as supplemented		Prospectus
		Parts II, IV Form 8-K

Form 8-K dated April 4, 1994
Form 8-K dated April 4, 1994
Form 8-K dated April 7, 1994
Form 8-K dated April 8, 1994
Form 8-K dated April 12, 1994
Form 8-K dated April 14, 1994
Form 8-K dated May 12, 1994
Form 8-K dated May 29, 1994
Form 8-K dated May 31, 1994
Form 8-K dated June 16, 1994
Form 8-K dated June 27, 1994
Form 8-K dated June 27, 1994
Form 8-K dated July 8, 1994
Form 8-K dated September 1, 1994
Form 8-K dated September 12, 1994
Form 8-K dated September 21, 1994
Form 8-K dated October 19, 1994
Form 8-K dated October 25, 1994
Form 8-K dated October 28, 1994
Form 8-K dated November 19, 1994
Form 8-K dated January 12, 1995

BOSTON CAPITAL TAX CREDIT FUND III L.P.
Form 10-K ANNUAL REPORT
FOR THE YEAR ENDED MARCH 31, 2006

TABLE OF CONTENTS


	PART I

Item 1.	Business	1
Item 1A.	Risk Factors	3
Item 1B.	Unresolved Staff Comments	5
Item 2.	Properties	5
Item 3.	Legal Proceedings	27
Item 4.	Submission of Matters to a Vote of Security Holders	27

	PART II

Item 5.	Market for the Fund’s Limited Partnership Interests and Related Partnership Matters	28
Item 6.	Selected Financial Data	29
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 7a.	Quantitative and Qualitative Disclosure About Market Risk	56
Item 8.	Financial Statements and Supplementary Data	56
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	56
Item 9a.	Controls and Procedures	56

	PART III

Item 10.	Directors and Executive Officers of the Fund	57
Item 11.	Executive Compensation	59
Item 12.	Security Ownership of Certain Beneficial Owners and Management	60
Item 13.	Certain Relationships and Related Transactions	60
Item 14.	Principal Accountant Fees and Services	61

	PART IV

Item 15.	Exhibits, Financial Statement Schedules, and Reports on Form 8-K	61
	Signatures	65
EX-13 Financial Statements
EX-23 Consents of Experts
EX-31.(A) Section 302 Certification
EX-31.(B) Section 302 Certification
EX-32.(A) Section 906 Certification
EX-32.(B) Section 906 Certification

PART I

Item 1. Business

Organization

Boston Capital Tax Credit Fund III L.P. (the “Fund”) is a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act as of September 19, 1991. Effective as of June 1, 2001, there was a restructuring and, as a result, the Fund’s general partner was reorganized as follows. The General Partner of the Fund continues to be Boston Capital Associates III L.P., a Delaware limited partnership. The general partner of the General Partner is now BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation. John P. Manning is the principal of Boston Capital Partners, Inc. The limited partner of the General Partner is Capital Investment Holdings, a general partnership whose partners are certain officers and employees of Boston Capital Partners, Inc., and its affiliates. The Assignor Limited Partner is BCTC III Assignor Corp., a Delaware corporation which is wholly-owned by John P. Manning.

The Assignor Limited Partner was formed for the purpose of serving in that capacity for the Fund and will not engage in any other business. Units of beneficial interest in the Limited Partnership Interest of the Assignor Limited Partner are assigned by the Assignor Limited Partner by means of beneficial assignee certificates (“BACs”) to investors and investors are entitled to all the rights and economic benefits of a Limited Partner of the Fund, including rights to a percentage of the income, gains, losses, deductions, credits and distributions of the Fund.

A Registration Statement on Form S-11 and the related prospectus, as supplemented (the “Prospectus”) was filed with the Securities and Exchange Commission and became effective January 24, 1992 in connection with a public offering (“Offering”) in one or more series of a minimum of 250,000 BACs and a maximum of 20,000,000 BACs at $10 per BAC. On September 4, 1993 the Fund filed an amendment to Form S-11 with the Securities and Exchange Commission which registered an additional 2,000,000 BACs at $10 per BAC for sale to the public in one or more series. The registration for additional BACs became effective on October 6, 1993. As of March 31, 2006, subscriptions had been received and accepted by the General Partner in Series 15, 16, 17, 18 and 19 for 21,996,102 BACs, representing capital contributions of $219,961,020. The Fund issued the last BACs in Series 19 on December 17, 1993. This concluded the Public Offering of the Fund.

The Offering, including information regarding the issuance of BACs in series, is described on pages 84 to 87 of the Prospectus, as supplemented, under the caption “The Offering”, which is incorporated herein by reference.

Description of Business

The Fund’s principal business is to invest as a limited partner in other limited partnerships (the “Operating Partnerships”) each of which
will own or lease and will operate an Apartment Complex exclusively or partially for low- and moderate-income tenants. Each Operating Partnership in which the Fund invests owns Apartment Complexes, which are completed, newly constructed, under construction or rehabilitation, or to-be constructed or rehabilitated, and which are expected to receive Government Assistance. Each Apartment Complex is expected to qualify for the low-income housing tax credit under Section 42 of the Code (the “Federal Housing Tax Credit”), providing tax benefits over a period of ten to twelve years in the form of tax credits which investors may use to offset income, subject to strict limitations, from other sources. Some Apartment Complexes may also qualify for the historic rehabilitation tax credit under Section 47 of the Code (the “Rehabilitation Tax Credit”). The Federal Housing Tax Credit and the Government Assistance programs are described on pages 37 to 51 of the Prospectus, as supplemented, under the captions “Tax Credit Programs” and “Government Assistance Programs,” which is incorporated herein by reference. Section 236 (f) (ii) of the National Housing Act, as amended, and Section 101 of the Housing and Urban Development Act of 1965, as amended, each provide for the making by HUD of rent supplement payments to low income tenants in properties which receive other forms of federal assistance including Tax Credits. The payments for each tenant, which are made directly to the owner of their property, generally are in amounts to enable the tenant to pay rent equal to 30% of the adjusted family income. Some of the Apartment Complexes in which the Partnership has invested are receiving such rent supplements from HUD. HUD has been in the process of converting rent supplement assistance to assistance paid not to the owner of the Apartment Complex, but directly to the individuals. At this time, the Partnership is unable to predict whether Congress will continue rent supplement programs payable directly to owners of Apartment Complexes.

As of March 31, 2006 the Fund had invested in 66 Operating Partnerships on behalf of Series 15, 62 Operating Partnerships on behalf of Series 16, 47 Operating Partnerships on behalf of Series 17, 34 Operating Partnerships on behalf of Series 18 and 26 Operating Partnerships on behalf of Series 19. A description of these Operating Partnerships is set forth in Item 2 herein.

The business objectives of the Fund are to:

	(1)		provide current tax benefits to Investors in the form of Federal Housing Tax Credits and in limited instances, a small amount of Rehabilitation Tax Credits, which an Investor may apply, subject to strict limitations, against the investor’s federal income tax liability from active, portfolio and passive income;

	(2)		provide tax benefits in the form of passive losses which an Investor may apply to offset his passive income (if any); and

	(3)		preserve and protect the Fund’s capital and provide capital appreciation and cash distributions through increases in value of the Fund’s investments and, to the extent applicable, equity buildup through periodic payments on the mortgage indebtedness with respect to the Apartment Complexes.

The business objectives and investment policies of the Fund are described more fully on pages 30 to 37 of the Prospectus, as supplemented, under the caption “Investment Objectives and Acquisition Policies,” which is incorporated herein by reference.

Employees

The Fund does not have any employees. Services are performed by the General Partner and its affiliates and agents retained by them.

Item 1A. Risk Factors

As used in this Item 1A, references to “we, “us” and “our” mean the Fund.

An investment in our Units and our investments in Local Limited Partnerships and their Operating Partnerships are subject to risks. These risks may impact the tax benefits of an investment in our Units, and the amount of proceeds available for distribution to our Limited Partners, if any, on liquidation of our investments.

In addition to the other information set forth in this report, you should carefully consider the following factors which could materially affect our business, financial condition or results of operations. The risks described below are not the only risks we face. Additional factors not presently known to us or that we currently deem to be immaterial also may materially adversely affect our business operations.

The ability of Limited Partners to claim tax losses from their investment in us is limited.

The IRS may audit us or a Local Limited Partnership and challenge the tax treatment of tax items. The amount of Low Income Housing Tax Credits and tax losses allocable to the investors could be reduced if the IRS were successful in such a challenge. The alternative minimum tax could reduce tax benefits from an investment in our Units. Changes in tax laws could also impact the tax benefits from an investment in our Units and/or the value of the Operating Partnerships. Until the Local Limited Partnerships have completed a mandatory fifteen year Low Income Housing Tax Credit compliance period, investors are at risk for potential recapture of Low Income Housing Tax Credits that have already been claimed.

The Low Income Housing Tax Credits rules are extremely complicated and noncompliance with these rules may have adverse consequences for Unit holders.

Noncompliance with applicable tax regulations may result in the loss of future Low Income Housing Tax Credits and the fractional recapture of Low Income Housing Tax Credits already taken. In most cases the annual amount of Low Income Housing Tax Credits that an individual can use is limited to the tax liability due on the person’s last $25,000 of taxable income. The Local Limited Partnerships may be unable to sell the Operating Partnerships at a price which would result in our realizing cash distributions or proceeds from the transaction. Accordingly, we may be unable to distribute any cash to its investors. Low Income Housing Tax Credits may be the only benefit from an investment in our Units.

Poor performance of one Housing Complex, or the real estate market generally, could impair our ability to satisfy our investment objectives.

Each Housing Complex is subject to mortgage indebtedness. If a Local Limited Partnership failed to pay its mortgage, it could lose its Housing Complex in foreclosure. If foreclosure were to occur during the first 15 years of the existence of the Fund, the loss of any remaining future Low Income Housing Tax Credits, a fractional recapture of previously claimed Low Income Housing Tax Credits, and a loss of our investment in the Housing Complex would occur. To the extent the Operating Partnerships receive government financing or operating subsidies, they may be subject to one or more of the following risks:

	—		difficulties in obtaining rent increases; limitations on cash distributions; limitations on sales or refinancing of Operating Partnerships;

	—		limitations on transfers of interests in Local Limited Partnerships;

	—		limitations on removal of Local General Partners;

	—		limitations on subsidy programs; and

	—		possible changes in applicable regulations.

The value of real estate is subject to risks from fluctuating economic conditions, including employment rates, inflation, tax, environmental, land use and zoning policies, supply and demand of similar properties, and neighborhood conditions, among others.

No trading market for the Units exists or is expected to develop.

There is currently no active trading market for the Units. Accordingly, Limited Partners may be unable to sell their Units or may have to sell Units at a discount. Limited Partners should consider their Units to be a long-term investment.

Investors may realize taxable gain on sale or disposition of certificates.

Upon the sales or other taxable disposition of certificates, investors will realize taxable income to the extent that their allocable share of the non-recourse mortgage indebtedness on the apartment complexes, together with the money they receive from the sale of the certificates, is greater than the original cost of their certificates. This realized taxable income is reduced to the extent that investors have suspended passive losses or credits. It is possible that the sale of certificates may not generate enough cash to pay the tax obligations arising from the sale.

Investors may have tax liability in excess of cash.

Investors eventually may be allocated profits for tax purposes which exceed any cash Boston Capital distributes to them. Under these circumstances, unless an investor has passive losses or credits to reduce such tax liability, the investor will have to pay federal income tax without a corresponding cash distribution from Boston Capital. Similarly, in the event of a sale or foreclosure of an apartment complex or a sale of certificates, an investor may be allocated taxable income, resulting in tax liability, in excess of any cash distributed to him or her as a result of such event.

Investors may not receive cash if apartment complexes are sold.

There is no assurance that investors will receive any cash distributions from the sale or refinancing of an apartment complex. The price at which an apartment complex is sold may not be large enough to pay the mortgage and other expenses which must be paid at such time. Even if there are net cash proceeds from a sale distributed to Boston Capital, expenses such as accrued Fund Management Fees and unpaid loans to Boston Associates will be deducted pursuant to Section 4.02(a) of the Fund Agreement included in Exhibit A. If any of these events happen, investors will not get all of their investment back, and the only benefit from an investment in Boston Capital will the tax credits received.

The sale or refinancing of the apartment complexes is dependent upon the following material factors:

	—		The necessity of obtaining the consent of the operating general partners;

	—		The necessity of obtaining the approval of any governmental agency(ies) providing government assistance to the apartment complex; and

	—		The uncertainty of the market.

Any sale may occur well after the fifteen-year federal housing tax credit compliance period.

We have insufficient sources of cash to pay its existing liabilities.

We currently do not have sufficient cash resources to satisfy its financial liabilities. Furthermore, we do not anticipate that we will have sufficient available cash to pay our future financial liabilities. Substantially all of our existing liabilities are payable to our General Partner and its affiliates. Though the amounts payable to the General Partner and its affiliates are contractually currently payable, we do not believe that the General Partner or its affiliates will demand immediate payment of these contractual obligations in the near term, however there can be no assurance that this will be the case. We would be materially adversely affected if the General Partner or its affiliates demanded payment in the near term of our existing contractual liabilities or suspended the provision of services to us because of its inability to satisfy these obligations. All monies currently deposited, or that will be deposited in the future, into the Partnership’s working capital reserves are intended to be utilized to pay our existing and future liabilities.

Item 1B. Unresolved Staff Comments

Not applicable.

Item 2. Properties

The Fund has acquired a Limited Partnership interest in 235 Operating Partnerships in five series, identified in the table set forth below. In each instance the Apartment Complexes owned by the applicable Operating Partnership is eligible for the Federal Housing Tax Credit. Initial occupancy of a unit in each Apartment Complex which complied with the Minimum Set-Aside Test (i.e., initial occupancy by tenants with incomes equal to no more than a

designated percentage of area median income) and the Rent Restriction Test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to as “Qualified Occupancy.” Each of the Operating Partnerships and each of the respective Apartment Complexes are described more fully in the Prospectus or applicable Report on Form 8-K. The General Partner believes that there is adequate casualty insurance on the properties.

Please refer to Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a more detailed discussion of operational difficulties experienced by certain of the Operating Partnerships.

Boston Capital Tax Credit Fund III L.P. — Series 15

PROPERTY PROFILES AS OF MARCH 31, 2006


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
April Gardens Apts. III	Las Piedras, PR		32	$	1,433,832		09/92		05/93		100	%	$	279,823
Autumwood Heights	Keysville, VA		40		1,274,738		08/92		01/93		100	%		256,700
Barton Village Apartments	Arlington, GA		18		497,577		10/92		03/93		100	%		101,154
Bergen Meadows	Bergen, NY		24		984,011		07/92		07/92		100	%		199,420
Bridlewood Terrace	Horse Cave, KY		24		767,806		01/94		01/95		100	%		167,679
Brunswick Commons	Lawrenceville, VA		24		787,464		03/92		09/92		100	%		152,282
Buena Vista Apartments, Phase II	Union, SC		44		1,418,944		03/92		01/92		100	%		281,000
Calexico Senior Apts.	Calexico, CA		38		1,879,217		09/92		09/92		100	%		366,220
Chestnut Hills Estates	Altoona, AL		24		721,049		09/92		09/92		100	%		146,500
Columbia Heights Apts.	Camden, AR		32		1,254,852		10/92		09/93		100	%		247,599
Coral Ridge Apartments	Coralville, IA		102		2,280,303		03/92		11/92		100	%		2,257,827
Country Meadows II, III, IV	Sioux Falls, SD		55		1,100,657		05/92		09/92		100	%		1,220,825
Curwensville House Apts.	Curwensville, PA		28		1,181,347		09/92		07/93		100	%		262,000
Deerfield Commons	Crewe, VA		39		1,201,190		04/92		06/92		100	%		242,430

Boston Capital Tax Credit Fund III L.P. — Series 15

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
East Park Apts. I	Dilworth, MN		24	$	492,714		06/94		01/94		100	%	$	406,100
Edgewood Apts.	Munford-ville, KY		24		766,205		06/92		08/92		100	%		156,763
Golden Age Apts.	Oak Grove, MO		17		393,816		04/92		11/91		100	%		84,410
Graham Village Apts.	Graham, NC		50		1,207,847		10/94		06/95		100	%		919,461
Greentree Apts.	Utica, OH		24		665,037		04/94		10/75		100	%		76,069
Greenwood Village	Fort Gaines, GA		24		656,125		08/92		05/93		100	%		131,268
Hadley’s Lake Apts.	East Machias ME		18		1,013,820		09/92		01/93		100	%		291,400
Hammond Heights Apts.	Westernport, MD		35		1,450,976		07/92		02/93		100	%		327,944
Harrison-ville Properties II	Harrison-ville, MO		24		595,524		03/92		11/91		100	%		144,004
Harvest Point Apts.	Madison, SD		30		1,170,598		03/95		12/94		100	%		268,760
Hearthside II	Portage, MI		60		1,840,168		04/92		11/92		100	%		1,153,620

Boston Capital Tax Credit Fund III L.P. — Series 15

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Heron’s Landing I	Lake Placid, FL		37	$	1,174,340		10/92		10/92		100	%	$	255,339
Higginsville Estates	Higginsville, MO		24		613,741		03/92		03/91		100	%		146,111
Kearney Estates	Kearney, MO		24		619,228		05/92		01/92		100	%		138,103
Lakeside Apts.	Lake Village AR		32		1,192,246		08/94		08/95		100	%		282,004
Lake View Green Apts.	Lake View, SC		24		867,463		03/92		07/92		100	%		183,603
Laurelwood Apartments, Phase II	Winnsboro, SC		32		1,043,568		03/92		02/92		100	%		229,986
Lebanon Properties III	Lebanon, MO		24		617,210		03/92		02/92		100	%		152,171
Lebanon Village II	Spring Grove, VA		24		894,150		08/92		02/93		100	%		169,000
Lilac Apts.	Leitchfield, KY		24		701,229		06/92		07/92		100	%		148,015
Livingston Plaza	Livingston, TX		24		653,008		12/92		11/93		100	%		176,534
Manning Lane Apts.	Manning, SC		42		1,435,204		08/92		03/93		100	%		296,436
Marshall Lane Apts.	Marshallville, GA		18		539,657		08/92		12/92		100	%		114,200

Boston Capital Tax Credit Fund III L.P. — Series 15

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Maryville Properties	Maryville, MO		24	$	701,588		05/92		03/92		100	%	$	156,636
Meadow View Apts.	Grantsville, MD		36		1,449,108		05/92		02/93		100	%		291,322
Millbrook Commons	Sanford, ME		16		897,686		06/92		11/92		100	%		227,100
Monark Homes	Van Buren & Barling, AR		10		310,201		06/94		03/94		100	%		239,800
North Prairie Manor Apts.	Plainwell, MI		28		856,413		09/92		05/93		100	%		206,820
North Trail Apts.	Arkansas City, KS		24		798,655		09/94		12/94		100	%		194,118
Oakwood Village	Century, FL		39		1,082,915		05/92		05/92		100	%		249,374
Osceola Estates Apts	Osceola, IA		24		604,425		05/92		05/92		100	%		161,325
Payson Senior Center Apts.	Payson, AZ		39		1,453,484		08/92		08/92		100	%		365,755
Rainier Manor Apts.	Mt. Rainier, MD		104		3,544,759		04/92		01/93		100	%		1,095,382
Ridgeview Apartments	Brainerd, MN		24		855,619		03/92		01/92		100	%		165,434

Boston Capital Tax Credit Fund III L.P. — Series 15

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Rio Mimbres II Apartments	Deming, NM		24	$	755,467		04/92		04/92		100	%	$	149,811
River Chase Apts.	Wauchula, FL		47		1,444,283		08/92		10/92		100	%		322,944
Rolling Brook III Apts.	Algonac, MI		26		805,930		06/92		11/92		100	%		185,632
School St. Apts. Phase I	Marshall, WI		24		637,647		04/92		05/92		100	%		666,025
Shenandoah Village	Shenandoah, PA		34		1,435,693		08/92		02/93		100	%		317,136
Showboat Manor Apts.	Chesaning, MI		26		776,128		07/92		02/93		96	%		178,084
Spring Creek II Apts.	Derby, KS		50		838,412		04/92		06/92		100	%		1,060,282
Sunset Sq. Apts.	Scottsboro, AL		24		721,359		09/92		08/92		100	%		143,900
Taylor Mill Apartments	Hodgenville KY		24		750,438		04/92		05/92		100	%		173,606
Timmons Village Apts.	Lynchburg, SC		18		608,182		05/92		07/92		100	%		122,450
University Meadows	Detroit, MI		53		2,210,149		06/92		12/92		100	%		1,676,750
Valatie Woods	Valatie, NY		32		1,269,811		06/92		04/92		100	%		277,600

Boston Capital Tax Credit Fund III L.P. — Series 15

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Village Woods	Healdton, OK		24	$	679,109		08/94		12/94		100	%	$	173,616
Villas Del Mar	Urb. Corales de Hatillo, PR		32		1,433,997		08/92		08/92		100	%		307,200
Virgen del Pozo Garden Apts.	Sabana Grande, PR		70		3,268,862		08/92		07/93		100	%		772,550
Weedpatch Country Apts.	Weedpatch, CA		36		1,922,505		01/94		09/94		100	%		461,197
Whitewater Village Apts.	Ideal, GA		18		513,065		08/92		11/92		100	%		108,000
Wood Park Pointe	Arcadia, FL		36		1,141,649		06/92		05/92		100	%		243,672

Boston Capital Tax Credit Fund III L.P. — Series 16

PROPERTY PROFILES AS OF MARCH 31, 2006


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
1413 Leavenworth Apts.	Omaha, NE		60	$	1,845,526		12/92		03/93		100	%	$	1,287,526
Abbey Orchards Apts.	Nixa, MO		48		1,331,527		03/94		06/94		100	%		1,163,875
Abbey Orchards Apts.II	Nixa, MO		56		1,101,829		08/94		07/94		100	%		1,137,750
Bernice Villa Apts.	Bernice, LA		32		888,894		05/93		10/93		100	%		200,476
Branch River Commons Apts	Wakefield, NH		24		1,231,015		09/92		02/93		100	%		246,105
Brunswick Manor Apts.	Lawrence- ville , VA		40		1,380,461		02/94		07/94		100	%		278,519
Canterfield Manor	Denmark, SC		20		748,737		11/92		01/93		100	%		175,959
Cape Ann YMCA Community Ctr.	Gloucester, MA		23		318,601		01/93		12/93		100	%		693,132
Carriage Park Village	Westville, OK		24		681,490		02/93		07/93		100	%		144,714
Cedar Trace Apts.	Brown City, MI		16		490,529		10/92		07/93		100	%		102,500
Cielo Azul Apts.	Aztec, NM		30		991,730		05/93		05/93		100	%		389,749
Clymer Park Apts.	Clymer, PA		32		1,414,985		12/92		11/94		100	%		317,428

Boston Capital Tax Credit Fund III L.P. — Series 16

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Crystal Ridge Apts.	Davenport, IA		126	$	3,494,949		10/93		02/94		100	%	$	3,032,972
Cumberland Woods Apts.	Middlesboro, KY		40		1,414,225		12/93		10/94		100	%		412,700
Deer Run Apts.	Warrenton, NC		31		612,803		08/93		03/93		100	%		572,200
Derry Round House Court	Borough of Derry, PA		26		1,084,594		02/93		02/93		100	%		248,019
Fairmeadow Apts.	Latta, SC		24		858,999		01/93		07/93		100	%		195,400
Falcon Ridge Apts.	Beattyville, KY		32		1,012,489		04/94		01/95		100	%		247,200
Forest Pointe Apts.	Butler, GA		25		728,141		12/92		09/93		100	%		162,397
Gibson Manor Apts.	Gibson, NC		24		867,220		12/92		06/93		100	%		161,412
Greenfield Properties	Greenfield, MO		20		516,093		01/93		05/93		100	%		126,046
Greenwood Apts.	Mt. Pleasant, PA		36		1,425,697		11/93		10/93		100	%		352,000
Harmony House Apts.	Galax, VA		40		1,420,984		11/92		07/93		100	%		285,588
Haynes House Apartments	Roxbury, MA		131		2,594,034		08/94		09/95		100	%		2,005,814
Holly Tree Manor	Holly Hill, SC		24		863,050		11/92		02/93		100	%		201,490
Isola Square Apartments	Isola, MS		32		944,732		11/93		04/94		100	%		246,722

Boston Capital Tax Credit Fund III L.P. — Series 16

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Joiner Manor	Joiner, AR		25	$	767,397		01/93		06/93		100	%	$	149,670
Landview Manor	Bentonia, MS		28		819,903		07/93		02/94		100	%		190,109
Laurel Ridge Apts.	Idabel, OK		52		1,338,057		04/93		12/93		100	%		282,606
Lawtell Manor Apts.	Lawtell, LA		32		878,390		04/93		08/93		100	%		202,603
Logan Lane Apts	Ridgeland, SC		36		1,266,595		09/92		03/93		100	%		274,750
Meadows of Southgate	Southgate, MI		83		2,125,556		07/93		05/94		100	%		1,716,000
Mendota Village Apts	Mendota, CA		44		1,921,155		12/92		05/93		100	%		438,300
Mid City Apts.	Jersey City, NJ		58		2,618,243		09/93		06/94		100	%		3,097,210
Newport Elderly Apts.	Newport, VT		24		1,176,390		02/93		10/93		100	%		221,626
Newport Manor Apts.	Newport, TN		30		923,737		09/93		12/93		100	%		204,863
Oak Forest Apts.	Eastman, GA		41		1,140,518		12/92		10/93		100	%		251,269

Boston Capital Tax Credit Fund III L.P. — Series 16

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Parkwoods Apts.	Anson, ME		24	$	1,250,875		12/92		09/93		100	%	$	320,206
Plantation Manor	Tchula, MS		28		805,870		07/93		12/93		100	%		195,030
Ransom St. Apartments	Blowing Rock, NC		13		499,021		12/93		11/94		100	%		100,249
Riviera Apts.	Miami Beach, FL		56		1,632,238		12/92		12/93		100	%		1,442,978
Sable Chase of McDonough	McDonough, GA		222		4,373,940		12/93		12/94		100	%		5,618,968
Simmesport Square Apts.	Simmesport, LA		32		894,527		04/93		06/93		100	%		198,500
St. Croix Commons Apts.	Woodville, WI		40		931,427		10/94		12/94		100	%		534,847
St. Joseph Square Apts.	St. Joseph, LA		32		926,298		05/93		09/93		100	%		206,086
Summersville Estates	Summersville, MO		24		604,252		05/93		06/93		100	%		157,976
Stony Ground Villas	St. Croix, VI		22		1,387,240		12/92		06/93		100	%		358,414
Talbot Village II	Talbotton, GA		24		685,054		08/92		04/93		100	%		129,683
Tan Yard Branch Apts. I	Blairsville, GA		24		741,008		12/92		09/94		100	%		151,154
Tan Yard Branch Apts. II	Blairsville, GA		25		725,283		12/92		07/94		100	%		144,304

Boston Capital Tax Credit Fund III L.P. — Series 16

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
The Fitzgerald Building	Plattsmouth, NE		20	$	565,161		12/93		12/93		100	%	$	924,780
The Woodlands	Tupper Lake, NY		18		909,942		09/94		02/95		100	%		214,045
Tuolumne City Senior Apts.	Tuolumne, CA		30		1,550,025		12/92		08/93		100	%		376,535
Turtle Creek Apts.	Monticello, AR		27		827,638		05/93		10/93		100	%		185,392
Valley View Apartments	Palatine Bridge, NY		32		1,361,848		05/94		05/94		100	%		326,870
Victoria Pointe Apts.	North Port, FL		42		1,408,539		10/94		01/95		100	%		338,058
Vista Linda Apartments	Sabana Grande, PR		50		2,456,355		01/93		12/93		100	%		445,530
West End Manor	Union, SC		28		962,622		05/93		05/93		100	%		231,741
Westchester Village of Oak Grove	Oak Grove, MO		33		978,273		12/92		04/93		100	%		889,700
Westchester Village of St. Joseph	St. Joseph, MO		60		1,167,753		07/93		06/93		100	%		1,316,500
Willcox Senior Apts.	Willcox, AZ		30		1,075,903		01/93		06/93		100	%		268,747
Woods Landing Apts.	Damascus, VA		40		1,417,928		12/92		09/93		100	%		286,171

Boston Capital Tax Credit Fund III L.P. — Series 17

PROPERTY PROFILES AS OF MARCH 31, 2006


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Annadale Apartments	Fresno, CA		222	$	12,106,016		01/96		06/90		100	%	$	1,108,873
Artesia Properties	Artesia, NM		40		1,364,632		09/94		09/94		100	%		399,464
Aspen Ridge Apts.	Omaha, NE		42		969,247		09/93		11/93		100	%		809,750
Briarwood Apartments	Clio, SC		24		878,672		12/93		08/94		100	%		211,133
Briarwood Apartments of DeKalb	DeKalb, IL		48		1,104,789		10/93		06/94		100	%		1,041,834
Briarwood Village	Buena Vista, GA		38		1,103,487		10/93		05/94		100	%		252,700
Brookwood Village	Blue Springs, MO		72		2,175,015		12/93		12/94		100	%		1,629,100
Cairo Senior Housing	Cairo, NY		24		1,045,101		05/93		04/93		100	%		201,711
Caney Creek Apts.	Caneyville, KY		16		462,921		05/93		04/93		100	%		118,800
Central House	Cambridge, MA		128		1,775,541		04/93		12/93		100	%		2,498,109
Clinton Estates	Clinton, MO		24		720,632		12/94		12/94		100	%		162,717
Cloverport Apts.	Cloverport, KY		24		725,431		04/93		07/93		100	%		174,575
College Greene Senior Apts	Chili, NY		110		3,800,000		03/95		08/95		100	%		232,545

Boston Capital Tax Credit Fund III L.P. — Series 17

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Crofton Manor Apts.	Crofton, KY		24	$	776,400		04/93		03/93		100	%	$	168,420
Deerwood Village Apts	Adrian, GA		20		621,087		02/94		07/94		100	%		160,900
Doyle Village	Darien, GA		38		1,140,477		09/93		04/94		100	%		235,509
Fuera Bush Senior Housing	Fuera Bush, NY		24		1,070,241		07/93		05/93		100	%		189,364
Gallaway Manor Apts.	Gallaway, TN		36		1,027,711		04/93		05/93		100	%		221,432
Glenridge Apartments	Bullhead City, AZ		52		1,997,809		06/94		06/94		100	%		520,500
Green Acres Estates	West Bath, ME		48		1,039,355		01/95		11/94		100	%		135,849
Green Court Apartments	Mt. Vernon, NY		76		2,325,897		11/94		11/94		88	%		964,813
Henson Creek Manor	Fort Washington, MD		105		3,983,950		05/93		04/94		100	%		2,980,421
Hickman Manor Apts. II	Hickman, KY		16		517,878		11/93		12/93		100	%		134,094
Hill Estates, II	Bladenboro, NC		24		987,201		03/95		07/95		100	%		132,300
Houston Village	Alamo, GA		24		665,833		12/93		05/94		100	%		169,418
Isola Square Apts.	Greenwood, MS		36		1,040,008		11/93		08/94		100	%		304,556

Boston Capital Tax Credit Fund III L.P. — Series 17

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Ivywood Park Apts.	Smyrna, GA		106	$	3,666,492		06/93		10/93		100	%	$	2,093,847
Jonestown Manor Apts.	Jonestown, MS		28		846,177		12/93		12/94		100	%		243,605
Largo Ctr. Apartments	Largo, MD		100		4,035,388		03/93		06/94		100	%		2,753,475
Laurel Ridge Apts.	Naples, FL		78		3,012,326		02/94		12/94		100	%		1,808,844
Lee Terrace Apartments	Pennington Gap, VA		40		1,451,575		02/94		12/94		100	%		288,268
Maplewood Park Apts.	Union City, GA		110		3,260,174		04/94		07/95		100	%		1,416,091
Oakwood Manor of Bennetts-ville	Bennetts-ville, SC		24		853,944		09/93		12/93		100	%		89,200
Opelousas Point Apts.	Opelousas, LA		44		1,345,049		11/93		03/94		100	%		439,277
Palmetto Villas	Palmetto, FL		49		1,590,200		05/94		04/94		100	%		421,795
Park Place	Lehigh Acres, FL		36		1,138,326		02/94		05/94		100	%		283,687
Pinehurst Senior Apts.	Farwell, MI		24		784,831		02/94		02/94		100	%		183,176
Quail Village	Reedsville, GA		31		852,781		09/93		02/94		100	%		171,855
Royale Townhomes	Glen Muskegon, MI		79		2,709,596		12/93		12/94		100	%		909,231

Boston Capital Tax Credit Fund III L.P. — Series 17

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Seabreeze Manor	Inglis, FL		37	$	1,204,354		03/94		01/95		100	%	$	294,387
Soledad Senior Apts.	Soledad, CA		40		1,891,273		10/93		01/94		100	%		407,894
Stratford Place	Midland, MI		53		892,443		09/93		06/94		100	%		902,915
Villa West V Apartments	Topeka, KS		52		993,782		02/93		10/92		100	%		902,700
Waynesburg House Apts.	Waynesburg, PA		34		1,456,764		07/94		12/95		100	%		501,140
West Front Residence	Skowhegan, ME		30		1,514,085		09/94		08/94		100	%		487,390
West Oaks Apartments	Raleigh, NC		50		1,089,332		06/93		07/93		100	%		811,994
White Castle Manor	White Castle, LA		24		757,960		06/94		05/94		100	%		198,684

Boston Capital Tax Credit Fund III L.P. — Series 18

PROPERTY PROFILES AS OF MARCH 31, 2006


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Arch Apartments	Boston, MA		75	$	1,618,505		04/94		12/94		100	%	$	3,017,845
Bear Creek Apartments	Naples, FL		118		4,440,703		03/94		04/95		100	%		3,586,687
Briarwood Apartments	Humbolt, IA		20		694,230		08/94		04/95		100	%		162,536
California Apartments	San Joaquin, CA		42		1,773,314		03/94		12/94		100	%		519,100
Chatham Manor	Chatham, NY		32		1,346,081		01/94		12/93		100	%		296,860
Chelsea Sq. Apartments	Chelsea, MA		6		301,393		08/94		12/94		100	%		451,929
Clarke School	Newport, RI		56		2,442,278		12/94		12/94		100	%		1,804,536
Cox Creek Apartments	Ellijay, GA		25		812,465		01/94		01/95		100	%		214,824
Evergreen Hills Apts.	Macedon, NY		72		2,660,383		08/94		01/95		100	%		1,627,293
Glen Place Apartments	Duluth, MN		35		1,053,931		04/94		06/94		100	%		1,328,621
Harris Music Building	West Palm Beach, FL		38		1,536,753		06/94		11/95		100	%		1,286,304
Kristine Apartments	Bakersfield, CA		60		1,179,072		10/94		10/94		100	%		1,636,293
Lakeview Meadows II	Battle Creek, MI		60		1,509,339		08/93		05/94		100	%		1,029,000

Boston Capital Tax Credit Fund III L.P. — Series 18

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Lathrop Properties	Lathrop, MO		24	$	719,203		04/94		05/94		100	%	$	171,579
Leesville Elderly Apts.	Leesville, LA		54		1,296,590		06/94		06/94		100	%		776,500
Lockport Seniors Apts.	Lockport, LA		40		984,624		07/94		09/94		100	%		595,439
Maple Leaf Apartments	Franklinville, NY		24		1,073,681		08/94		12/94		100	%		296,587
Maple Terrace	Aurora, NY		32		1,351,589		09/93		09/93		100	%		279,988
Marengo Park Apts.	Marengo, IA		24		733,829		10/93		03/94		100	%		133,552
Meadowbrook Apartments	Oskaloosa, IA		16		470,947		11/93		09/94		100	%		96,908
Meadows Apartments	Show Low, AZ		40		1,450,784		03/94		05/94		100	%		420,302
Natchitoches Senior Apartments	Natchitoches, LA		40		942,455		06/94		12/94		100	%		644,175
Newton Plaza Apts.	Newton, IA		24		789,132		11/93		09/94		100	%		166,441
Oakhaven Apartments	Ripley, MS		24		481,217		01/94		07/94		100	%		116,860
Parvin’s Branch Townhouses	Vineland, NJ		24		613,480		08/93		11/93		100	%		761,856

Boston Capital Tax Credit Fund III L.P. — Series 18

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Peach Tree Apartments	Felton, DE		32	$	1,444,021		01/94		07/93		100	%	$	206,100
Pepperton Villas	Jackson, GA		29		842,320		01/94		06/94		100	%		222,762
Prestonwood Apartments	Bentonville, AR		62		690,484		12/93		12/94		100	%		1,067,200
Richmond Manor	Richmond, MO		36		1,001,195		06/94		06/94		100	%		231,593
Rio Grande Apartments	Eagle Pass, TX		100		2,088,392		06/94		05/94		100	%		666,840
Troy Estates	Troy, MO		24		668,098		12/93		01/94		100	%		159,007
Vista Loma Apartments	Bullhead City, AZ		41		1,572,050		05/94		09/94		100	%		465,650
Vivian Seniors Apts.	Vivian, LA		40		228,446		07/94		09/94		100	%		625,691
Westminster Meadow	Grand Rapids, MI		64		1,949,222		12/93		11/94		100	%		1,378,000

Boston Capital Tax Credit Fund III L.P. — Series 19

PROPERTY PROFILES AS OF MARCH 31, 2006


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Callaway Villa	Holt's Summit, MO		48	$	1,058,956		06/94		12/94		100	%	$	1,181,010
Carrollton Villa	Carrollton, MO		48		1,322,464		06/94		03/95		100	%		1,121,758
Clarke School	Newport, RI		56		2,442,278		12/94		12/94		100	%		1,153,719
Coopers Crossing	Irving, TX		93		3,339,540		06/96		12/95		100	%		2,145,000
Delaware Crossing Apartments	Ankeny, IA		152		3,123,015		08/94		03/95		100	%		3,337,884
Garden Gate Apartments	Forth Worth, TX		240		5,332,618		02/94		04/95		100	%		3,576,605
Garden Gate Apartments	Plano, TX		240		6,689,633		02/94		05/95		100	%		3,166,064
Hebbronville Senior	Hebbronville, TX		20		502,019		12/93		04/94		100	%		82,592
Jefferson Square	Denver, CO		64		2,297,571		05/94		08/95		100	%		1,715,351
Jenny Lynn Apts.	Morgantown, KY		24		781,043		01/94		09/94		100	%		182,800
Lone Star Senior	Lone Star, TX		24		593,775		12/93		05/94		100	%		138,740
Mansura Villa II Apartments	Mansura, LA		32		936,321		05/94		08/95		100	%		227,910
Maplewood Park Apts.	Union City, GA		110		3,260,174		04/94		07/95		100	%		1,416,091
Martindale Apts.	Martindale, TX		24		654,753		12/93		01/94		100	%		154,790

Boston Capital Tax Credit Fund III L.P. — Series 19

PROPERTY PROFILES AS OF MARCH 31, 2006

Continued


				Mortgage									Cap Con
				Balance						Qualified			Paid
Property				As of		Acq		Const		Occupancy			Thru
Name	Location	Units		12/31/05		Date		Comp		3/31/06			3/31/06
Munford Village	Munford, AL		24	$	737,299		10/93		04/94		100	%	$	165,800
Northpoint Commons	Kansas City, MO		158		4,313,751		07/94		06/95		100	%		2,124,024
Poplar Ridge Apts.	Madison, VA		16		634,602		12/93		10/94		100	%		124,704
Prospect Villa III Apartments	Hollister, CA		30		1,700,611		03/95		05/95		100	%		499,104
Sahale Heights Apts.	Elizabethtown, KY		24		834,295		01/94		06/94		100	%		238,600
Seville Apartments	Forest Village, OH		24		643,029		03/94		03/78		100	%		71,780
Sherwood Knoll	Rainsville, AL		24		759,006		10/93		04/94		100	%		162,500
Summerset Apartments	Swainsboro, GA		30		916,826		01/94		11/95		100	%		223,029
Tanglewood Apartments	Lawrenceville, GA		130		3,871,449		11/93		12/94		100	%		3,020,840
Village North I	Independence, KS		24		828,754		06/94		12/94		100	%		190,471
Vistas at Lake Largo	Largo, MD		110		4,707,271		12/93		01/95		100	%		2,833,420
Wedgewood Lane Apartments	Cedar City, UT		24		974,692		06/94		09/94		100	%		262,800

Item 3. Legal Proceedings

None.

Item 4. Submission of Matters to a Vote of Security Holders

None.

PART II


Item 5.		Market for the Partnership’s Limited Partnership Interests and Related Partnership Matters and Issuer Purchases of Partnership Interests

	(a)		Market Information

			The Fund is classified as a limited partnership and does not have common stock. There is no established public trading market for the BACs and it is not anticipated that any public market will develop.

	(b)		Approximate number of security holders

			As of March 31, 2006 the Fund has 13,102 BAC holders for an aggregate of 21,996,102 BACs, at a subscription price of $10 per BAC, received and accepted.

			The BACs were issued in series. Series 15 consists of 2,426 investors holding 3,870,500 BACs, Series 16 consists of 3,353 investors holding 5,429,402 BACs, Series 17 consists of 2,888 investors holding 5,000,000 BACs, Series 18 consists of 2,069 investors holding 3,616,200 BACs, and Series 19 consists of 2,366 investors holding 4,080,000 BACs at March 31, 2006.

	(c)		Dividend history and restriction

			The Fund has made no distributions of Net Cash Flow to its BAC Holders from its inception, September 19, 1991 through March 31, 2006.

			The Fund Agreement provides that Profits, Losses and Credits will be allocated each month to the holder of record of a BAC as of the last day of such month. Allocation of Profits, Losses and Credits among BAC Holders are made in proportion to the number of BACs held by each BAC Holder.

			Any distributions of Net Cash Flow or Liquidation, Sale or Refinancing Proceeds will be made within 180 days of the end of the annual period to which they relate. Distributions will be made to the holders of record of a BAC as of the last day of each month in the ratio which (i) the BACs held by such Person on the last day of the calendar month bears to (ii) the aggregate number of BACs outstanding on the last day of such month.

			Fund allocations and distributions are described on page 60 of the Prospectus, as supplemented, under the caption “Sharing Arrangements: Profits, Credits, Losses, Net Cash Flow and Residuals”, which is incorporated herein by reference.

Item 6. Selected Financial Data

The information set forth below presents selected financial data of the Fund for each of the years ended March 31, 2002 through March 31, 2006. Additional detailed financial information is set forth in the audited financial statements listed in Item 15 hereof.


	March 31,			March 31,			March 31,			March 31,			March 31,
Operations	2006			2005			2004			2003			2002
Interest & Other Income	$	50,412		$	24,940		$	30,103		$	45,840		$	108,235
Share of Loss of Operating Partnership		(3,518,129	)		(12,401,037	)		(9,459,170	)		(9,013,016	)		(9,965,195	)
Operating Expense *		(14,206,603	)		(21,174,761	)		(3,818,419	)		(3,394,204	)		(2,557,899	)

Net Loss	$	(17,674,320	)	$	(33,550,858	)	$	(13,247,486	)	$	(12,361,380	)	$	(12,414,859	)

Net Loss per BAC	$	(0.80	)	$	(1.51	)	$	(.60	)	$	(.56	)	$	(.56	)


	March 31,			March 31,		March 31,		March 31,		March 31,
Balance Sheet	2006			2005		2004		2003		2002
Total Assets	$	11,569,745		$	27,590,451	$	58,793,521	$	70,791,712	$	83,058,985

Total Liabilities	$	23,655,997		$	22,002,383	$	19,522,261	$	18,272,966	$	18,178,859

Partners’ Capital	$	(12,086,252	)	$	5,588,068	$	39,271,260	$	52,518,746	$	64,880,126


*		Operating Expense includes Impairment Losses recorded in the amounts of $11,603,236 for 2006, $18,797,540 for 2005, $1,136,378 for 2004, and $707,589 for 2003.


Item 7.		Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements including our intentions, hopes, beliefs, expectations, strategies and predictions of our future activities, or other future events or conditions. There statements are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created by these acts. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including, for example, the factors identified in Part I, Item 1 of this Report. Although we believe that the assumptions underlying these forward-looking statements are reasonable, any of the assumptions could be inaccurate, and there can be no assurance that the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.

Liquidity

The Fund’s primary source of funds is the proceeds of its Public Offering. Other sources of liquidity include (i) interest earned on capital contributions held pending investment or on working capital reserves and (ii) cash distributions from operations of the Operating Partnerships in which the Fund has and will invest. All sources of liquidity are available to meet the obligations of the Fund. The Fund does not anticipate significant cash distributions in the long or short term from operations of the Operating Partnerships.

The Fund is currently accruing the annual fund management fee to enable each series to meet current and future third party obligations. Fund management fees accrued during the year ended March 31, 2006 were $2,503,908, and total fund management fees accrued as of March 31, 2006 were $22,728,772. During the year ended March 31, 2006 the Fund paid fees of $917,527 which were applied to prior year accruals.

Pursuant to the Partnership Agreement, such liabilities will be deferred until the Fund receives sale or refinancing proceeds from Operating Partnerships, and at that time proceeds from such sales or refinancing would be used to satisfy such liabilities.

Capital Resources

The Fund offered BACs in a Public Offering declared effective by the Securities and Exchange Commission on January 24, 1992. The Fund received and accepted subscriptions for $219,961,020 representing 21,996,102 BACs from investors admitted as BAC Holders in Series 15 through 19 of the Fund. The Fund issued the last BACs in Series 19 on December 17, 1993. This concluded the Public Offering of the Fund.

(Series 15). The Fund commenced offering BACs in Series 15 on January 24, 1992. The Fund received and accepted subscriptions for $38,705,000 representing 3,870,500 BACs from investors admitted as BAC Holders in Series 15. Offers and sales of BACs in Series 15 were completed and the last of BACs in Series 15 were issued by the Fund on June 26, 1992.

During the fiscal year ended March 31, 2006, the Fund did not use any of Series 15 net offering proceeds to pay outstanding installments of its capital contributions. As of March 31, 2006, proceeds from the offer and sale of BACs in Series 15 had been used to invest in a total of 67 Operating Partnerships in an aggregate amount of $29,390,546, and the Fund had completed payment of all installments of its capital contributions to 66 of the 67 Operating Partnerships. Series 15 has $4,208 in capital contributions that remain to be paid to some of the Operating Partnerships. The remaining contributions will be released when the Operating Partnership has achieved the conditions set forth in its partnership agreement.

(Series 16). The Fund commenced offering BACs in Series 16 on July 10, 1992. The Fund received and accepted subscriptions for $54,293,000, representing 5,429,402 BACs in Series 16. Offers and sales of BACs in Series 16 were completed and the last of the BACs in Series 16 were issued by the Fund on December 28, 1992.

During the fiscal year ended March 31, 2006, the Fund released $500 of Series 16 net offering proceeds to pay outstanding installments of its capital contributions to 1 Operating Partnership. As of March 31, 2006, the net proceeds from the offer and sale of BACs in Series 16 had been used to invest in a total of 64 Operating Partnerships in an aggregate amount of $40,829,228, and the Fund had completed payment of all installments of its capital contributions to 60 of the 64 Operating Partnerships. Series 16 has $71,862 in capital contributions that remain to be paid to the other 4 Operating Partnerships. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 17). The Fund commenced offering BACs in Series 17 on January 24, 1993. The Fund received and accepted subscriptions for $50,000,000 representing 5,000,000 BACs from investors admitted as BAC Holders in Series 17. Offers and sales of BACs in Series 17 were completed and the last of the BACs in Series 17 were issued on June 17, 1993.

During the fiscal year ended March 31, 2006, the Fund did not use any of Series 17 net offering proceeds to pay outstanding installments of its capital contributions. As of March 31, 2006, proceeds from the offer and sale of BACs in Series 17 had been used to invest in a total of 48 Operating Partnerships in an aggregate amount of $37,062,980, and the Fund had completed payments of all installments of its capital contributions to 43 of the 48 Operating Partnerships. Series 17 has outstanding contributions payable to 5 Operating Partnerships in the amount of $67,895 as of March 31, 2006. Of the amount outstanding, $15,097 has been funded into an escrow account on behalf of one Operating Partnership. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 18). The Fund commenced offering BACs in Series 18 on June 17,1993. The Fund received and accepted subscriptions for $36,162,000 representing 3,616,200 BACs from investors admitted as BAC Holders in Series 18. Offers and sales of BACs in Series 18 were completed and the last of the BACs in Series 18 were issued on September 22, 1993.

During the fiscal year ended March 31, 2006, the Fund did not use any of Series 18 net offering proceeds to pay outstanding installments of its capital contributions. As of March 31, 2006, proceeds from the offer and sale of BACs in Series 18 had been used to invest in a total of 34 Operating Partnerships

in an aggregate amount of $26,652,205, and the Fund had completed payments of all installments of its capital contributions to 32 of the 34 Operating Partnerships. Series 18 has $18,554 in capital contributions that remain to be paid to the other 2 Operating Partnerships. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 19). The Fund commenced offering BACs in Series 19 on October 8, 1993. The Fund received and accepted subscriptions for $40,800,000 representing 4,080,000 BACs from investors admitted as BAC Holders in Series 19. Offers and sales of BACs in Series 19 were completed and the last of the BACs in Series 19 were issued on December 17, 1993.

During the fiscal year ended March 31, 2006, the Fund did not use any of Series 19 net offering proceeds to pay outstanding installments of its capital contributions. As of March 31, 2006, proceeds from the offer and sale of BACs in Series 19 had been used to invest in a total of 26 Operating Partnerships in an aggregate amount of $30,164,485, and the Fund had completed payments of all installments of its capital contributions to the Operating Partnerships.

Results of Operations

The Fund incurred an annual fund management fee to the General Partner and/or its affiliates in an amount equal to 0.5% of the aggregate cost of the Apartment Complexes owned by the Operating Partnerships, less the amount of various partnership management and reporting fees paid or payable by the Operating Partnerships. The annual fund management fee incurred, net of reporting fees received for the fiscal years ended March 31, 2006, 2005 and 2004, was $2,098,275, $1,666,693, and $2,202,369, respectively. The decrease in March 31, 2005 annual fund management fee incurred net of reporting fees is primarily the result of the payment of prior years Reporting Fee in the amounts of $256,461 for Series 15 and $235,999 for Series 17 from the sale of one Operating Partnership.

The Fund’s investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested or intends to invest. The Fund’s investments in Operating Partnerships have been and will be made principally with a view towards realization of Federal Housing Tax Credits for allocation to its partners and BAC holders.

(Series 15). As of March 31, 2006 and 2005, the average Qualified Occupancy for the series was 99.9%. The series had a total of 66 properties at March 31, 2006, 65 of which were at 100% Qualified Occupancy.

For the tax years ended December 31, 2005 and 2004, the series, in total, generated $2,921,113 and $2,879,758, respectively, in passive income tax losses that were passed through to the investors and also provided $0.05 and $0.14, respectively, in tax credits per BAC to the investors. Series 15 experienced a decrease in the tax credits generated per BAC from calendar year 2005 to 2006. The Operating Partnerships were allocated tax credits for 10 years. Based on each Operating Partnership’s lease-up, the total credits could be spread over as many as 13 years. In cases where the actual number of years is more than 10, the credits delivered in the early and later years will be less than the maximum allowable per year. The decrease in credits from calendar year 2005 to 2006 results from the fact that a large number of the Operating Partnerships are in their final years of credit. The decrease in tax credits generated per BAC is expected to continue until all credits have been realized and tax credits generated per BAC will be reduced to zero.

As of March 31, 2006 and 2005, Investments in Operating Partnerships for Series 15 was $594,892, and $1,479,898, respectively. Investments in Operating Partnerships was affected by the way the Fund accounts for its investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended December 31, 2005 and 2004, Series 15 reflects net loss from Operating Partnerships of $(1,838,522) and $(2,458,307), respectively, which includes depreciation and amortization of $3,307,014 and $3,372,711, respectively.

For the years ended March 31, 2006, 2005, and 2004, the net loss for series 15 was $1,364,396, $5,118,904, and $1,604,187, respectively. The major components of these amounts are the Fund’s share of income (losses) from Operating Partnership and the fund management fee. The variances in net income is due to the income (losses) recorded from the dispositions of Operating Limited Partnerships in the prior year.

In an attempt to capitalize on the strong California real estate market, the Operating General Partner of Hidden Cove Apartments (Hidden Cove) entered into an agreement to sell the property and the transaction closed in May 2003. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. Sale proceeds due to Boston Capital Tax Credit Fund I-Series 3 (BCTC I) and Boston Capital Tax Credit Fund III-Series 15 (BCTC III) were $1,572,368 and $136,352, respectively. The majority of the sale proceeds were received by the Investment Partnerships in May 2003, and the balance was received in September 2003. Of the proceeds received, $1,240,404 and $107,565, for Series 3 and Series 15, respectively, was distributed to the investors in July 2004. This represented per BAC distributions of $.430 and $.028 for Series 3 and 15, respectively. The total returned to the investors was distributed based on the number of BACs held by each investor. The amounts for each series, while different in actual dollars, represent the same percentage of return to each Investment Partnership. The remaining proceeds total of $360,750 was paid to BCAMLP for fees and expenses related to the sale and partial reimbursement of amounts payable to affiliates. The breakdown of the amount to be paid to BCAMLP is as follows: $10,000 represents reimbursement of expenses incurred related to sale, which includes due diligence, legal and mailing costs; $50,000 represents the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property; and $300,750 represents a partial payment of outstanding Asset Management Fees due to BCAMLP. At the time of the sale, the Operating General Partners retained some funds in an account in the name of the Operating Partnership to cover costs that would be incurred in the process of dissolving the Operating Partnership entity. These funds were not fully utilized and the Investment Limited Partnership share of the remaining funds was paid in April 2005. The totals received were $9,163 for Series 3 and $795 for Series 15. The amounts have been added to each Series available reserves and were recognized in the gain on the sale of the property as of March 31, 2005. Annual losses generated by the Operating Partnership, which were applied against the Investment Limited Partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the Investment Limited Partnership investment in the Operating Partnership to zero for Series 3 and $66,166 for Series 15. Accordingly, the gain on the sale of the property was recorded by Series 3 and Series 15 of $1,535,521 and $28,992, respectively. The gains recorded represented the proceeds received by the Investment Limited Partnership, net of their

remaining investment balance, unreimbursed advances to the Operating Partnership and their share of the overhead and expense reimbursement. In the current year ended, March 31, 2006, $3,990 and $46,010 for Series 15 and Series 3, respectively of the sales proceeds were refunded to BCAMLP to pay accrued Asset Management Fees.

School Street I Limited Partnership (School Street Apts. I) is a 24-unit complex located in Marshall, Wisconsin. The property has struggled with low occupancy for several years. Throughout 2005, management took numerous steps to increase occupancy, including: decreasing the rent levels, eliminating water and sewer surcharges, initiating a resident referral program, replacing the site manager and advertising in local publications. Despite these efforts, operations remain below breakeven. Average occupancy for the fourth quarter of 2006 was 91% (up from 70% in the previous quarter). The mortgage, taxes, insurance, and accounts payables are current. The current mortgage for this property matured in December 2004. The Operating General Partner was able to refinance the original mortgage with a four-year loan with the first two years requiring monthly interest payments only. In April 2005, the Investor Limited Partner agreed to supplement the General Partner’s funding of operating deficits by advancing necessary funds at quarterly intervals through the end of the 2007 compliance period. The Investment Limited Partner’s advances are limited to 25% of the General Partner’s documented operating deficit funding advances and will not exceed $25,000 in aggregate. The Investment Limited Partner advanced $1,875 to the property during the first quarter of 2006, bringing the total advances under this agreement to $4,625.

Beckwood Manor Eight Limited Partnership (Lakeside Apartments) is a 32-unit, senior property, located in Lake Village, Arkansas. Occupancy through first quarter 2006 was 72%. Despite low occupancy, the property operated above breakeven by generating $1,776 of cash in first quarter 2006. The low occupancy is due to a lack of qualified residents in the Lake Village area. To increase rental traffic to the property, the management company has been advertising heavily in surrounding area newspapers. A rental increase is going to be submitted for approval this year to be in effect for 2007. The mortgage, taxes, insurance and payables are current.

Livingston Plaza, Limited (Livingston Plaza) is a 24-unit, family property located in Livingston, Texas. Although it is located within the Hurricane Rita affected area, the property did not suffer any damages. Instead, some residents displaced from the southern part of the state evacuated to Livingston and are living at the property. USDA Rural Development has provided temporary rental assistance. However, the rental assistance only runs through September 2006. To retain these evacuees as residents, the site manager referred them to agencies providing assistance with apartment furnishing, and to potential employment opportunities. Despite management’s best efforts, most evacuees chose to return to their hometowns after a few months. As a result, through the fourth quarter occupancy averaged only 87%. Despite the low occupancy, the property continues to operate at breakeven in the first quarter 2006. This was due to lower maintenance expenses. The site manager decreased maintenance expenses by hiring a resident to do maintenance work at the property instead of hiring a contractor, which was more expensive. All taxes, insurance and mortgage payments are current. The Operating General Partner guarantee is unlimited in time and amount.

Osage Housing Associates Limited Partnership (Spring Creek Apartments II) is a 50-unit family property located in Derby, Kansas, a suburb of Wichita. The Investment Limited Partner is Boston Capital Tax Credit Fund III L.P. — Series 15. The property produced credits from 1992 through 2002 with compliance ending in 2007. The property expended ($24,560) in 2005 which an occupancy

rate of 92%. In the first quarter of 2006 occupancy has increased to 98% and costs have been controlled and there was generated cash of $14,816. The Operating General Partner, MRV, Inc., funded operating deficits in 2005 despite an expired guarantee and has stated that they will continue to fund any deficits.

Greentree Apartments Limited, (Sue-Ellen Apartments) is a 24-unit apartment complex for families located in Utica, OH. The Investment Limited Partner is Boston Capital Tax Credit Fund III L.P. - Series 15. The property produced tax credits from 1995 through 2005 with compliance ending in 2009. In 2005 the property had an occupancy rate of 75% expending cash of ($3,816). In the first quarter of 2006 the property reflected an occupancy rate of 75%, and expended cash of ($954). Also, unbeknown to the Investment Limited Partner, the General Partner changed management firms effective January 1, 2006. The General Partner did not receive appropriate approval to change firms. The Investment Limited Partnership is working with the General Partner to resolve the issue. The Operating General Partner continues to fund deficiencies despite an expired guarantee.

In October 2004, while attempting to capitalize on the strong California real estate market, the Operating General Partner of California Investors VII (Summit Ridge Apartments/Longhorn Pavilion) entered into an agreement to sell the property and the transaction closed in the first quarter of 2005. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. The proceeds to the Investment Limited Partner received in the first quarter 2005 are $919,920, $312,959, $1,459,511, and $1,346,025, for Boston Capital Tax Credit Fund II-Series 12 and Series 14 (BCTC II) and Boston Capital Tax Credit Fund III-Series 15 and Series 17 (BCTC III), respectively. Of the total received, $211,638 is for payment of outstanding reporting fees due to an affiliate of the Investment Partnership, $183,283 is a reimbursement of funds previously advanced to the Operating Partnership by affiliates of the Investment Partnership and $3,643,494 is the estimated proceeds from the sale of the Investment Limited Partner’s interests. Of the proceeds, it is expected that $700,257, $235,742, $1,074,778, and $989,026, for Series 12, Series 14, Series 15, and Series 17, respectively, will be distributed to the investors, or used to pay non-resident tax withholdings requirements of the State of California. Provided this is the actual amount distributed, this represents a per BAC distribution of $.236, $.042, $.278, and $.198, for Series 12, Series 14, Series 15, and Series 17, respectively. The remaining proceeds of $643,691 are anticipated to be paid to BCAMLP for fees and expenses related to the sale and partial reimbursement for amounts owed to affiliates. The breakdown of amounts expected to be paid to BCAMLP is as follows: $51,250 represents the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property; $88,274 represents a reimbursement of estimated expenses incurred in connection with the disposition; and $504,167 represents a partial payment of outstanding Asset Management Fees due to BCAMLP. Losses on the sale of the property were recorded by Series 12, Series 14, Series 15 and Series 17 of $(2,113,352), $(690,791), $(3,046,179) and $(2,791,520), respectively, in the quarter ended March 31, 2005. As of December 2005, additional sales proceeds of $99,080 were received and allocated to Series 12, Series 14, Series 15 and Series 17 as follows: $23,128 to Series 12, $7,786 to Series 14, $35,500 to Series 15 and $32,666 to Series 17. These proceeds will be retained by the Investment Limited Partner to improve their reserve balances. The gain/(loss) recorded represented the proceeds received by the Investment Limited Partner, net of their remaining investment balance, unreimbursed advances to the Operating Partnership and their share of the overhead and expense reimbursement. In the

current year ended, March 31, 2006, $11,964, $4,028, $18,362 and $16,897 for Series 12, Series 14, Series 15 and Series 17, respectively, of the sales proceeds were refunded to BCAMLP to pay accrued Asset Management Fees.

Wood Park Pointe, RRH, Limited (Wood Park Pointe) is located in Arcadia, Florida. The property was hit by multiple hurricanes in the late fall of 2004 resulting in the total loss of habitability for all 37 residential units. USDA Rural Development is requiring that the project be rebuilt. The Operating General Partner received insurance proceeds for reconstruction in January 2005. The proceeds were less then the anticipated rebuilding costs; however, the Operating General Partner has secured increased rental amounts per Rural Development so that the property can sustain additional debt. A contractor has been selected to rebuild the property. The anticipated construction completion date is October 2006, well before the required completion date of December 2006. The Investment Limited Partner is currently negotiating with the General Partner to purchase 33% of the Investment Limited Partner’s interest in Wood Park Pointe during the third quarter of 2006 and purchase the remaining 67% of Investment Limited Partnership interest after expiration of the compliance period, December 31, 2006. A purchase and sale agreement is anticipated to be signed in the third quarter of 2006.

Heron’s Landing RRH Limited (Heron’s Landing I) is a 37-unit development located in Lake Placid, Florida. The property was damaged by two hurricanes in September 2004 resulting in 19 residential units coming off line. Insurance proceeds for reconstruction were received and all 19 units were repaired and leased by May of 2005. At the time of the hurricane, the Investment Limited Partner was in the process of negotiating a transfer of the Operating General Partner’s interest. The transfer of the Operating General Partner’s interest occurred on January 7, 2005. The property generated $13,617 of cash flow in 2005. In the first quarter of 2006, the property generated $3,682 of cash flow. The tax credit compliance period ends on December 31, 2006.

Lake View Associates (Lake View Green Apartments) is a 24-unit property located in Lake View, SC. Low occupancy, due to the lack of rental assistance, has hindered this property’s performance. Occupancy, which averaged 79% in 2005, rose to 87.50% the first quarter of 2006. Management has had difficulty finding residents that are able to pay the rental rates necessary to sustain the property. Due to federal and state cutbacks, residents are not receiving the rental assistance payments that were expected when the property was originally underwritten. Current operating expense levels exceed the state average by 10% and, at current income levels, it would be necessary to increase occupancy to full capacity or decrease operating expenses by 2.50% to achieve breakeven operation. The mortgage, taxes, insurance and payables are current. The compliance period for the property ends in 2007. The Operating General Partner’s obligation to fund operating deficits is unlimited in time and amount.

Buena Vista Apartments, Phase II (Buena Vista Apartments) is a 44-unit property located in Union, SC. Industrial decline in the area has led to a dwindling population base from which to draw residents. The property has had trouble competing with properties that receive rental assistance. As a result, the development has been forced to reduce rents to maintain occupancy. During 2005, the property expended in ($32,776) in cash. The reasons for the cash flow deficit include fluctuating occupancy, insufficient rental rates and additional replacement reserve funding per the workout plan. If the property did not need to fund the reserve, it would have generated $3,040. The property maintained a 91% average occupancy in 2005 and has reported a slight occupancy increase to 92.4%, as of the first quarter 2006. Management will continue to market through local media and civic organizations and will continue to

monitor the possibility of a rental increase. Mortgage, taxes, insurance and payables to non-related entities are current. The Operating General Partner’s Guarantee is unlimited in time and amount, with the compliance period for this property ending in 2007.

(Series 16). As of March 31, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 62 properties at March 31, 2006, all of which were at 100% Qualified Occupancy.

For the tax years ended December 31, 2005 and 2004, the series, in total, generated $2,986,452 and $3,506,250, respectively, in passive income tax losses that were passed through to the investors and also provided $0.02 and $0.56, respectively, in tax credits per BAC to the investors. Series 16 experienced a decrease in the tax credits generated per BAC from calendar year 2005 to 2006. The Operating Partnerships were allocated tax credits for 10 years. Based on each Operating Partnership’s lease-up, the total credits could be spread over as many as 13 years. In cases where the actual number of years is more than 10, the credits delivered in the early and later years will be less than the maximum allowable per year. The decrease in credits from calendar year 2005 to 2006 results from the fact some of the Operating Partnerships have entered their final years of credit. The decrease in tax credits generated per BAC is expected to continue until all credits have been realized and tax credits generated per BAC will be reduced to zero.

As of March 31, 2006 and 2005, Investments in Operating Partnerships for Series 16 was $1,974,221 and $4,684,946, respectively. Investments in Operating Partnerships was affected by the way the Fund accounts for these investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended December 31, 2005 and 2004, Series 16 reflects net loss from Operating Partnerships of $(2,724,758) and $(3,184,975), respectively, which includes depreciation and amortization of $4,195,283 and $4,521,303, respectively.

For the years ended March 31, 2006, 2005, and 2004, the net loss for series 16 was $3,277,786, $7,557,628, and $3,479,439, respectively. The major components of these amounts are the Fund’s share of income (losses) from Operating Partnership and the fund management fee.

Cass Partners, L.P. (The Fitzgerald Building) is a 20-unit apartment building located in Plattsmouth, NE. This property continues to operate below break even due to low occupancy. Through the first quarter of 2006, physical occupancy was 65%, an increase from the 2005 average occupancy of 45% but still very low. Due to the lack of cash flow, management has not been able to make ready the vacant apartments, which are in need of general maintenance and repairs, as well as updates to kitchen appliances. Also affecting the marketing of the property is its downtown location, lack of parking and lack of amenities such as washer/dryer hook-ups. The General Partner has taken the property management in-house with the objective of reducing operating expenses. The mortgage and insurance are current; however, the real estate taxes for 2003, 2004 and 2005 are past due. The Operating General Partner is working with the city to establish a payment plan. The General Partner continues to fund operating deficits.

Clymer Park Associates Limited Partnership (Clymer Park Apartments) located in Clymer, Pennsylvania is a 32-unit elderly development. The 2005 audited financial statement indicates operations above breakeven due to improvements

in occupancy. As of March 31, 2006, average occupancy at the property is 89%. The management company currently maintains a significant waiting list of pre-qualified tenants waiting for rental assistance. The Operating General Partner continues to monitor the Operating Partnership.

The Operating General Partner of Mariner’s Pointe Limited Partnership I and Mariner’s Pointe Limited Partnership II entered into an agreement to sell the Mariner’s Pointe I & II. The transaction closed in March 2006. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. The sales price for Mariner’s Pointe I & II was $4,587,705, which includes outstanding mortgage balances of approximately $3,998,707 and proceeds to the Investment Partnership of $262,403. Of the total Investment Partnership proceeds received, $110,860 represents a reimbursement of funds previously advanced to the Operating Partnership by the Investment Limited Partnership, $52,500 represents payment of outstanding reporting fees due to an affiliate of the Investment Partnership and approximately $14,501 is for third party legal costs. Proceeds from the sale of assets of $87,063 will be returned to cash reserves held by BCTC Fund III — Series 16. The monies held in cash reserves will be utilized to pay current-operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the Investment Partnership. After all outstanding obligations of the Investment Partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Losses on the sale of the property were recorded by Series 16 of $(108,072), in the quarter ended March 31, 2006. The loss recorded represents the proceeds received by the Investment Limited Partner, net of their remaining investment balance. Accordingly, a loss on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, has been recorded in the amount of ($23,530) as of March 31, 2006.

Mid City Associates (Mid City Apartments) is a 58-unit, scattered site family property located in Jersey City, NJ. Through the first quarter of 2006 the property has an occupancy rate of 98%. The property is projected to have a positive cash flow in 2006. Through first quarter 2006, the property generated $12,441 of cash. A 3% rent increase was approved by the state agency when current leases expire. In 2006 it is estimated about 75% of the units will shift to the new rents. This will increase revenues about $15,000 in 2006. The mortgage and taxes are current.

Summersville Estates (Summersville Estates Limited Partnership) is a 24–unit property located in Summersville, Missouri. The property struggled in 2005, with an average occupancy of only 78% for the year. This was largely due to a lack of Rental Assistance on four units, which rented for significantly more than single family homes for rent in the area. Management has been in regular contact with the local housing authority to bring applicants with mobile vouchers to the property. The property manager, who also performs maintenance, has concentrated on getting vacant units rent-ready in a timely manner and improving curb appeal. As a result, occupancy was up to 92% for the month of March, 2006. The financial reports for the first quarter show that the property is generating cash and all vacant units are rent-ready. The Investment General Partner will continue to work with management on getting the vacant units leased and monitor operations closely until they have stabilized. The mortgage, taxes and insurance are all current.

Greenfield Properties (Greenfield Properties, L.P.) is a 20-unit property located in Greenfield, Missouri. The property struggled to compete with low-priced single family home rentals in 2005, with an average occupancy of only

85% for the year. In an effort to improve occupancy, management is offering an incentive of a 27” television for signing a lease. As a result, occupancy for the month of December was up to 100%. Year to date average occupancy through the first quarter of 2006 was 95% and the property is generating cash. The Investment General Partner will continue to work with Management on maintaining improved occupancy and monitor operations closely until the property has stabilized. The mortgage, taxes and insurance are all current.

St. Croix Commons Limited Partnership (St. Croix Commons Apartments) is a 40-unit, family property located in Woodville, Wisconsin. The property operated with an average occupancy of 84% for the year 2005. Based on the most recent information received, occupancy has been consistent with the prior year through March 2006. Operating expenses continue to stay below the state average. Because of the high vacancy rate and the low rental rates in the area, the property did not achieve breakeven operations through the first quarter 2006. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The Operating General Partner continues to financially support the Operating Partnership. The mortgage, taxes, insurance and payables are current.

Davenport Housing Associates (Crystal Ridge Apartments) is a 126-unit family property located in Davenport, Iowa. The Investment Limited Partner is Boston Capital Tax Credit Fund III L.P. - Series 16. The property produced credits from 1993 through 2004. Compliance will end in 2009. In the third quarter of 2005, the property was refinanced. The end result of the refinancing has been positive, with 2005 audited financial numbers reflecting a positive cash flow of $6,752. In the first quarter of 2006, the property reflected an occupancy rate of 87%, producing cash of $17,787. The recent success of the property can be directly attributed to the refinancing.

1413 Leavenworth Historic, L.P. (Lofts By The Market Apartments) is a 60-unit historic development located on the fringe of the historic warehouse district in downtown Omaha, Nebraska. The property operated with positive cash flow through 1999, although unresolved tax credit compliance issues accumulated, including the receipt of 8823s. Since 2000, ineffective management and the cost of repairing deferred maintenance items in 2002 resulted in the property operating with a substantial negative cash flow. The original developer/general partner is still in place and continues to fund the operating deficits. Over the past three years, there have been four different management companies retained to manage the property. This inconsistency has contributed to the cash flow and compliance problems at the property. On June 1, 2003, management of the property was transferred to Fieldcrest Management. Fieldcrest is an entity related to the Operating General Partner that was formed to take over the management of the Operating General Partner’s assets. The Operating General Partner’s close relationship with the managing agent has encouraged him to provide the resources and cooperation necessary to assure the management company’s success in operating the property effectively. The management company has implemented expense controls and has worked to decrease payables. The property had strong occupancy of 95% for the first quarter of 2006 and is generating cash. The property was able to refinance at the beginning of September 2005 and paid down some payables from the proceeds of the refinance. Current tenant files have been audited for tax compliance standards and are in review by the management. To date they have not come across any violations. Prior year 8823s continue to be reviewed to determine if issues can still be addressed.

(Series 17). As of March 31, 2006 and 2005, the average Qualified Occupancy for the Series was 99.75%. The series had a total of 47 properties at March 31, 2006, 46 of which were at 100% Qualified Occupancy.

For the tax years ended December 31, 2005 and 2004, the series, in total, generated $1,752,116 and $2,587,116, respectively, in passive income tax losses that were passed through to the investors and also provided $0.05 and $0.54, respectively, in tax credits per BAC to the investors. Series 17 experienced a decrease in the tax credits generated per BAC from calendar year 2005 to 2006. The Operating Partnerships were allocated tax credits for 10 years. Based on each Operating Partnership’s lease-up, the total credits could be spread over as many as 13 years. In cases where the actual number of years is more than 10, the credits delivered in the early and later years will be less than the maximum allowable per year. The decrease in credits from calendar year 2005 to 2006 results from the fact some of the Operating Partnerships have entered their final years of credit. The decrease in tax credits generated per BAC is expected to continue until all credits have been realized and tax credits generated per BAC will be reduced to zero.

As of March 31, 2006 and 2005, Investments in Operating Partnerships for Series 17 was $1,915,188 and $4,891,801, respectively. Investments in Operating Partnerships was affected by the way the Fund accounts for these investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended December 31, 2005 and 2004, Series 17 reflects net loss from Operating Partnerships of $(3,085,058) and $(1,400,083), respectively, which includes depreciation and amortization of $3,984,108 and $3,999,711, respectively. The significant increase in net loss in the current year was due to the prior year sale of one Operating Partnership, which is discussed below.

For the years ended March 31, 2006, 2005, and 2004, the net loss for series 17 was $4,861,581, $7,393,334, and $2,950,844, respectively. The major components of these amounts are the Fund’s share of income (losses) from Operating Partnership and the fund management fee. The variances in net income is due to the income (losses) recorded from the dispositions of Operating Limited Partnerships in the prior year.

In an attempt to capitalize on the strong California real estate market, the Operating General Partner of California Investors VI (Orchard Park) entered into an agreement to sell the property and the transaction closed in June 2003. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. Sale proceeds due to Boston Capital Tax Credit Fund I-Series 3 (BCTC I) and Boston Capital Tax Credit Fund III-Series 17 (BCTC III), after repayment of advances made to the Operating Partnership, were $453,144 and $31,790, respectively. Of the proceeds received, $352,768 and $24,748, for Series 3 and Series 17, respectively, was distributed to the investors in July 2004. This represented a per BAC distribution of $.122 and $.005 for Series 3 and 17, respectively. The total returned to the investors was distributed based on the number of BACs held by each investor at the time of the sale. The amounts for each series, while different in actual dollars, represent the same percentage of return to each Investment Partnership. The remaining proceeds total of $107,418 was paid to BCAMLP for fees and expenses related to the sale, and partial reimbursement of amounts payable to affiliates. The breakdown of the amount to be paid to BCAMLP is as follows:

$10,000 represents reimbursement of expenses incurred related to sale, which includes due diligence, legal and mailing costs; $50,000 represents the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property; and $47,418 represents a partial payment of accrued asset management fees. Annual losses generated by the Operating Partnership, which were applied against the Investment Limited Partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the Investment Limited Partnership investment in the Operating Partnership to zero for Series 3 and $28,682 for Series 17. Accordingly, gains on the sale of the property were recorded as of March 31 2004 by Series 3 and Series 17 of $406,422 and $3,108, respectively. The gains recorded represented the proceeds received by the Investment Limited Partnership, net of their remaining investment balance and their share of the overhead and expense reimbursement. In the current year ended, March 31, 2006, $46,722 and $3,278 for Series 3 and Series 17, respectively, of the sales proceeds were refunded to BCAMLP to pay accrued Asset Management Fees.

Midland Housing LP (Stratford Place Apartments) is a 53-unit, family/elderly property, located in Midland, MI. The average occupancy for this property has steadily increased. In 2004 it was 79%; it improved to an average of 84% in 2005, and through the first quarter of 2006 has increased to 100%. The site manager stated there are three affordable housing communities in this town, all competing with one another. Management continues to advertise due to the area competition. Through the first quarter of 2006, the property expended $16,000 in cash due to high expenses, mostly in utilities. If the property remains at 100% occupied, it should generate cash flow in 2006. The Operating General Partner continues to fund operating deficits. The mortgage, real estate taxes and insurance are current.

Green Acres Limited Partnership (Green Acres Estates) is a 48 unit (20 LIHTC units) family property located in West Bath, ME. The final year of Tax Credits was 2004 and the LIHTC Compliance Period runs through 2008. The property was placed on watch effective January 2006 when the 2005 audit revealed the property expended $194 per unit, due to bad debt expenses, which amounted to $202 per unit. This expenditure was funded through the use of cash held in the partnership operating account. Financial statements through the first quarter of 2006 have been requested from the General Partner. Occupancy, which averaged 93% in 2005, remains steady through the first quarter of 2006. The Investment Limited Partner will work with management and the General Partner to implement an effective resident screening and collections policy. All real estate taxes, insurance, and mortgage payments are current. The Operating General Partner’s obligation to fund Operating Deficits is unlimited in time and amount.

Operations at Palmetto Properties Ltd. (Palmetto Villas) have historically suffered from low occupancy and significant deferred maintenance issues. Occupancy improved during 2005, and continues to be strong in 2006, averaging 94% in the first quarter. The property operated below breakeven in 2005, despite the occupancy improvement, due to an increase in operating expenses. Utility expenses increased, reflecting the increase in water and sewer fees. Administrative costs also rose from the prior year due to an increase in salaries. Lack of cash flow is also responsible for the reserves being below average. In September 2005, USDA Rural Development completed a re-amortization of the debt, combining the previously vouched taxes, thus easing the burden on the property for all outstanding loan balances due. The annual cost savings that will be realized by the Partnership totals approximately $20,000. With the savings, management intends to fully fund the replacement reserve account and to begin some needed capital improvements to correct deferred maintenance issues. Management has focused on funding the tax and

insurance escrow to avoid any further delinquencies in paying the property taxes. Management requested and received a rent increase of $35 per unit per month which was effective January 1, 2006. They also requested additional units of rental assistance and are looking to have approval on five units by June, 2006. The property is operating above breakeven in the first quarter of 2006. The Operating General Partner has expressed a desire to withdraw from the Partnership. The Investment General Partner has drafted documentation to admit an affiliate of the management company as the new Operating General Partner in the Partnership. It is anticipated that this transaction will be complete in June of 2006. The Investment General Partner continues to monitor the situation.

Aspen Ridge Apartments, L.P. (Aspen Ridge Apartments) is a 42-unit development located in Omaha, Nebraska. The property operated with positive cash flow through 1999, although unresolved tax credit compliance issues accumulated, including the receipt of 8823s. Since 2000, ineffective management and the cost of repairing deferred maintenance items in 2002 resulted in the property operating with a substantial negative cash flow. The original developer/general partner is still in place and continues to fund the operating deficits. Over the past three years, there have been four different management companies retained to manage the property. This inconsistency has contributed to the cash flow and compliance problems at the property. On June 1, 2003, management of the property was transferred to Fieldcrest Management. Fieldcrest is an entity related to the Operating General Partner that was formed to take over the management of the Operating General Partner’s assets. The Operating General Partner’s close relationship with the managing agent has encouraged him to provide the resources and cooperation necessary to assure the management company’s success in operating the property effectively. As a result, occupancy for the first quarter of 2006 improved to 93%. The management company has implemented expense controls and has worked to decrease payables. The property also refinanced at the beginning of September and was able to pay some expenses from the proceeds of the refinance. The property is now reporting positive cash flow. Current tenant files have been audited for tax credit compliance standards and are in review by the Management. To date they have not come across any violations. Past 8823s are being reviewed to determine if any corrections can be made.

proceeds of $643,691 are anticipated to be paid to BCAMLP for fees and expenses related to the sale and partial reimbursement for amounts owed to affiliates. The breakdown of amounts expected to be paid to BCAMLP is as follows: $51,250 represents the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property; $88,274 represents a reimbursement of estimated expenses incurred in connection with the disposition; and $504,167 represents a partial payment of outstanding Asset Management Fees due to BCAMLP. Losses on the sale of the property were recorded by Series 12, Series 14, Series 15 and Series 17 of $(2,113,352), $(690,791), $(3,046,179) and $(2,791,520), respectively, in the quarter ended March 31, 2005. As of December 2005, additional sales proceeds of $99,080 were received and allocated to Series 12, Series 14, Series 15 and Series 17 as follows: $23,128 to Series 12, $7,786 to Series 14, $35,500 to Series 15 and $32,666 to Series 17. These proceeds will be retained by the Investment Limited Partner to improve their reserve balances. The gain/(loss) recorded represented the proceeds received by the Investment Limited Partner, net of their remaining investment balance, unreimbursed advances to the Operating Partnership and their share of the overhead and expense reimbursement. In the current year ended, March 31, 2006, $11,964, $4,028, $18,362 and $16,897 for Series 12, Series 14, Series 15 and Series 17, respectively, of the sales proceeds were refunded to BCAMLP to pay accrued Asset Management Fees.

Shawnee Housing is a 52-unit development located in Topeka, KS. The Investment Limited Partner is Boston Capital Tax Credit Fund III – Series 17. The property produced credits from 1993 through 2003 with compliance ending in 2008. In the first quarter of 2006, the property was able to increase its occupancy level from the 2005 average of 90% to 94%. The General Partner continues to fund deficits despite an expired guarantee. The Investment Limited Partnership has been in discussions with the General Partner to sell the property shortly after compliance ends.

Henson Creek Manor Associates Limited Partnership (Henson Creek Manor) is a 105-unit development located in Fort Washington, MD. In December of 2004 a resident of the complex reported mold in windows of the unit. Inspection Connection was hired to inspect the unit in January 2005. Their report confirmed high humidity levels and the presence of mold in 3 units. Work orders were prepared for the maintenance staff to address moisture condensation and re-caulk the windows in those units. The steps the maintenance staff took did not fully resolve the issue and a contractor was hired in mid-October 2005 to install a pump system that would reduce the excess humidity in the units in an effort to stop mold growth. On October 20, 2005 while the contractor was cutting into the floor to install the sub pump system, the steel beams that support the unit were cut causing structural issues to the units. There were no injuries stemming from the collapse and the contractor’s insurance company is covering the cost of repair. An engineering company that deals with structural damage and mold remediation was hired in mid-March 2006. It took management several months to find a company that deals with both issues. The company has been working in the units and the repairs are anticipated to be completed at the end of July 2006. The Investment General Partner continues to monitor the situation.

Brewer Street Apartments LP (West Oaks Apartments) is a 50 unit family development located in Raleigh, NC. The property is being watched closely, effective January 2006 since the property operated at deficit of ($19,990) in 2005. The reason for the loss includes insufficient rental rates and high operating expenses, which exceed the state average by 10%. Although occupancy averaged 98% in 2005, the property expended cash of $634 per unit due to high operating costs. The primary drivers of elevated operating expenses were maintenance and management fees (which correlate to revenue generated). The

2005 deficit was covered by an under funding of the replacement reserve account and withdrawals from the replacement reserve for expensed improvements. The Investment Limited Partnership alerted the General Partner of the under funding, and proper funding promptly commenced in January of 2006. Through the first quarter of 2006, occupancy has averaged greater than 99% and annualized per unit operating expenses have declined by 4%, moving them closer to the state average. The 2006 year-to-date operations has yielded cash generated of $80 per unit. The Investment Limited Partner will assess whether there is potential for a rent increase. All real estate tax, insurance and mortgage payments remain current. The General Partner’s obligation to fund operating deficits is unlimited in time and amount.

(Series 18). As of March 31, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 34 properties at March 31, 2006, all of which were at 100% Qualified Occupancy.

For the tax years ended December 31, 2005 and 2004, the series, in total, generated $2,194,674 and $2,406,077, respectively, in passive income tax losses that were passed through to the investors and also provided $0.19 and $1.06, respectively, in tax credits per BAC to the investors. Series 17 experienced a decrease in the tax credits generated per BAC from calendar year 2005 to 2006. The Operating Partnerships were allocated tax credits for 10 years. Based on each Operating Partnership’s lease-up, the total credits could be spread over as many as 13 years. In cases where the actual number of years is more than 10, the credits delivered in the early and later years will be less than the maximum allowable per year. The decrease in credits from calendar year 2005 to 2006 results from the fact some of the Operating Partnerships have entered their final years of credit. The decrease in tax credits generated per BAC is expected to continue until all credits have been realized and tax credits generated per BAC will be reduced to zero.

As of March 31, 2006 and 2005, Investments in Operating Partnerships for Series 18 was $726,046 and $1,935,611, respectively. Investments in Operating Partnerships were affected by the way the Fund accounts for these investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended December 31, 2005 and 2004, Series 18 reflects net loss from Operating Partnerships of $(2,270,257) and $(2,558,210), respectively, which includes depreciation and amortization of $2,660,275 and $2,653,403, respectively.

For the years ended March 31, 2006, 2005, and 2004, the net loss for series 18 was $1,710,872, $6,339,698, and $2,885,843, respectively. The major components of these amounts are the Fund’s share of income (losses) from Operating Partnership and the fund management fee.

Series 18 has invested in 4 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner initially was Reimer Calhoun, Jr., or an entity, which was affiliated with or controlled by Reimer Calhoun (the “Reimer Calhoun Group”). The Operating Partnerships are: Leesville Elderly Apts., Lockport Elderly Apts., Natchitoches Elderly Apts., and Vivian Elderly Apts. Lockport Elderly Apts. sustained major damage to shingles, roof vents and had water damage resulting from Hurricanes Rita and Katrina. Roof damage was covered by tarps. Missing shingles were replaced for $9,250. The partnership is currently receiving bids for roofing and sheetrock repairs. Insurance proceeds have not yet been received for Lockport Elderly. Natchitoches Elderly Apts sustained minor damage to shingles and building

gutters resulting from Hurricane Rita. All repairs for Natchitoches Elderly Apts were completed on February 21, 2006 and were paid for out of operations. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 174 apartment units in total. The low income housing tax credit available annually to Series 18 from the Calhoun Partnerships is approximately $523,397, which is approximately 11% of the total annual tax credit available to investors in Series 18.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 18 is not an investor. The Investment General Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective Operating Partnerships, improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Reimer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun’s fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun’s prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS, so adjustments to tax credits will be made only for the tax years 2004 and later in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun’s fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun’s controlling interest in the Operating General Partner has been assigned to

Murray Calhoun, the son of Reimer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution. Rural Housing Services has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the Investment General Partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the Investment General Partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the Investment General Partner to remove a general partner in the future in the event of certain various events.

Westminster Meadow L.D.H.A. LP (Westminster Meadow Apartments) is a 64-unit (63 LIHTC, 1 Market) property located in Grand Rapids, MI. Historically, the property has operated with high occupancy ranging in mid 90% and above break even. However, in 2004 average occupancy declined to 85% and resulted in cash expended of $35,000, which was funded by increasing payables by $43,000. Occupancy levels through the fourth quarter of 2005 average 83%. In the first quarter 2006, average physical occupancy dropped to 78%. The Operating General Partner has stated the market in Grand Rapids has been very soft since the beginning of 2004. The Operating General Partner’s management company, First Centrum Management took over the property management in February of 2006. First Centrum is working on implementing a new marketing plan to increase occupancy. The plan includes an increase in their outreach marketing effort by hiring consultants to implement a new sales program. The management company is also offering $126/month off scheduled rents, and $1 security deposits if prospective tenants move in within two weeks of application. The site manager is also authorized to offer 1 month free rent to close a deal. The current rent concessions make the one-bedroom units very competitive in the marketplace, which historically have commanded higher rents than older competing properties.

Glen Place Apartments (Glen Place Apartments) operated with an average occupancy of 92% through 2005. Based on the most recent information received, occupancy through March 2006 has been consistent with the prior year average. The operating expenses continue to stay below the state average. Despite the strong occupancy level, the low rental rates in the area prevented the property from achieving breakeven operations through the first quarter of 2006. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The Operating General Partner continues to financially support the partnership. The mortgage, taxes, insurance and payables are current.

Harris Housing Limited Partnership (Harris Music Building) is a building consisting of retail space and 38 units (all LIHTC) in West Palm Beach, FL. The final year of Tax Credit delivery was 2005 and the compliance period for the property ends in 2010. The property was placed on watch effective first quarter 2006 when the 2005 audit revealed a weakening performance. The property maintained a 93.8% average occupancy in 2005 and has reported a slight occupancy increase to 95.6%, as of the first quarter 2006. The 2005 audited financials reported significant increases in maintenance, insurance, and utility expenses. The first quarter 2006 financials show a hold on these operating expense increases. The Investment Limited Partner will work with property management to identify ways in which to lower operating costs. The Operating General Partner’s obligation to fund operating deficits has expired. Property mortgage, insurance, real estate taxes are current. Replacement reserves are also adequately funded. A site visit will be performed in the second quarter 2006.

Arch Development, LP, (Arch Apartments) is a 75-unit property located in Boston, Massachusetts providing low-income housing to homeless, HIV positive and very low income tenants. The property had an average occupancy for the first quarter of 2006 of 91% and is generating cash. Although payables and accrued expenses are lower than in previous years, the balances are still excessively high, as are tenant and subsidy receivables. The General Partner has confirmed that real estate taxes and water and sewer payments are current with the City of Boston. Management continues to work with the Boston Housing Authority to improve applicant processing and move-in; however, the process is still averaging more than 60 days. Additionally, the Boston Housing Authority’s certification and recertification process is very slow and results in large tenant and subsidy receivables from retroactive rent changes. Currently, two of the commercial spaces are vacant and management is working with an area broker to secure new tenants. In December 2005 an appraisal survey was conducted of the commercial spaces and the resulting report showed higher revenue potential than is currently being realized. The Investment General Partner is closely monitoring the overall performance of this partnership and will continue to do so until operations have improved and stabilized. The Operating General Partner has an unlimited guarantee in time and amount.

Bear Creek of Naples (Bear Creek Apartments) is a 120-unit family development located in Naples, Florida. The management company is a related entity to the Operating General Partner. In late 2004, the Operating General Partner discovered mismanagement at the site level and took immediate steps to cure, including staffing changes. During this process, it was discovered that the tax credit files were being inadequately kept. The Investment General Partner dispatched its compliance department to conduct a full audit on all files, issuing a detailed report to the Operating General Partner. The Operating General Partner subsequently hired a third-party tax credit compliance consultant to assist in the correction of all non-compliance issues. The Investment General Partner has closely monitored the progress of this issue and all non-compliance issues have been addressed by the Florida housing agency’s deadline of April 30, 2005. On September 12, 2005, the Florida housing monitoring agency completed an annual management review that noted the full compliance of the resident files. However, they also noted minor physical violations, which had been ongoing and resulted in the issuance of ten 8823’s, rendering the entire development out of compliance. Additionally, 24 days following the annual review and prior to the completion of the repair of the minor violations, Hurricane Wilma hit the development and resulted in between $500,000 to $700,000 in necessary repairs. In the fourth quarter of 2005, repairs began and all ten buildings are slated to receive new roofs, siding, windows and frames, stucco work and additional minor repairs,

including those cited by Florida Housing Finance Corporation. In a letter dated February 28, 2006 from Florida Housing, the Finance Corporation stated that the property had been ‘granted relief’ until January 17, 2007. As long as the related work is completed and inspected by that date, the 8823’s will be officially rescinded. Repairs from the hurricanes continue and are on schedule to be completed by June of 2006.

Chelsea Square Development Limited Partnership (Chelsea Square Apartments) is a 6-unit property located in Chelsea, Massachusetts. Although occupancy improved to 100% in the third and fourth quarters of 2005, the first quarter of 2006 saw a drop in average occupancy to 80%. In addition, the commercial spaces were vacant for most of 2004 and the first two quarters of 2005 because the City of Chelsea delayed issuing building permits due to outstanding trash violation fees. After the Operating General Partner paid the fees, the City released the building permits and the commercial storefronts are now occupied. The income generated from the commercial spaces has enabled the property to operate at above break-even for the first time in over a year. The Investment General Partner is closely monitoring the overall performance of this partnership and will continue to do so until operations have improved and stabilized. The property’s mortgage and property insurance are current. The Operating General Partner’s operating deficit guarantee is unlimited as to time and amount.

Parvin’s L.P. (Parvin’s Branch Townhouses) is a 24-unit family property located in Vineland, New Jersey. Credit delivery began in 1993 and continued through 2003. The property operated below breakeven in 2005. The property expended cash mostly due to high debt service (specifically a high interest rate of 10.5%). Operating expenses were in line with previous year state averages. Debt service payments represented 54% of the property’s total income. The average occupancy for 2005 was 98% and dropped slightly to 96% through first quarter of 2006. The Investment General Partner has suggested the Operating General Partner investigate refinancing the property. The Operating General Partner continues to fund operating deficits.

Preston Wood Associates, LP is a 62-unit property located in Bentonville, Arkansas. Average occupancy was 78% for 2005. Occupancy in the first quarter of 2006 dropped to 48%. The regional manager stated that occupancy levels have been dropping due to management evicting problem residents and trying to improve the reputation of the property. The regional manager feels confident that occupancy will increase and remain stable once all the problem residents are removed. The Operating General Partner is planning on completing $270,000 of capital improvements at the property over the next year. The improvements will be funded entirely by the General Partner. The General Partner believes that Bentonville is a growing community and making the improvements to the property will increase occupancy and generate cash. The Investment General Partner will continue to work with the Operating General Partner to stabilize the physical occupancy. The Operating General Partner continues to fund all operating deficits. The mortgage, trade payables, property taxes, and insurance are current.

Lathrop Properties, L.P. (Lathrop Properties) is a 24-unit property located in Lathrop, Missouri. Average occupancy through March 2006 was 88%. The property expended cash in the first quarter due to low occupancy and unit turnover expense. The management company recently replaced the site manager and maintenance person and anticipates that the new staff will help the property reach a stable level of occupancy in the second quarter. The new staff is working diligently to turn units as they come available. The Investment General Partner will continue to monitor occupancy and operations closely until they have stabilized. The mortgage, taxes and insurance are all current.

Evergreen Hills Associates, L.P. (Evergreen Hills Apartments) is a 72-unit property located in Macedon, NY. The property has historically operated below breakeven. The problem has been attributed to high operating expenses and historically low occupancy. New management has been effective in their marketing efforts using community events and advertising to attract a pool of qualified tenants. The property is in very good condition and the location is attractive to prospective residents. Management has made improvements to the roofs, sidewalks and decks to further enhance the quality of the property. Vacant units are quickly filled through word of mouth and advertising and a waitlist of qualified applicants was established. As a result, average occupancy has increased to 97% through the first quarter of 2006. Management has also worked to improve collections by enforcing late fees and using the eviction process to force residents to pay their rent on time. Additionally, management has had success in controlling operating expenses. They have reduced their reliance on maintenance contractors and are doing the majority of maintenance in-house. The only service currently contracted out is carpet cleaning and they have purchased the equipment necessary to perform all snow removal and icing. Administrative expenses have been reduced by decreasing the number of site management staff and decreasing office expenses. The management company negotiated and locked in a 20% decrease in insurance premiums through 2006. As a result of high occupancy and a decrease in operating expenses, the property is operating above breakeven through first quarter 2006. In 2005 the General Partner made advances to the property to properly fund the replacement reserve, operating reserve and the tax and insurance escrow due to deficiencies related to prior years operating shortfalls. The mortgage, trade payables, and taxes are all current.

Humboldt I, LP (Briarwood Apartments) is a 20-unit property located in Humboldt, IA. The property continued to operate below breakeven in 2005 due to low occupancy and high maintenance expenses related to resident turnover. The partnership complied with the USDA Rural Development workout plan and funded reserves at a higher level in 2005. Occupancy averaged 82% in 2005 and averaged 85% through March 31, 2006. Management is placing an additional advertisement in a larger newspaper and is targeting seniors for one-bedroom units through outreach with various housing programs. The challenges cited by management include the inability to rent to full time students, problem tenants that required eviction and limitations due to the state of the local economy. Representatives of the Investment General Partner visited the site during the fourth quarter to meet with the management company and to consider a potential roof replacement at Humboldt. The property has had problems with loose shingles and there will be a decision made on the potential roof replacement in the second quarter of 2006. The management company is addressing USDA Rural Development’s concerns regarding the condition of the roofs. The Investment General Partner will continue to closely monitor the property until occupancy improves and operations stabilize.

(Series 19). As of March 31, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 26 properties at March 31, 2006, all of which were at 100% Qualified Occupancy.

For the tax year ended December 31, 2005 and 2004, the series, in total, generated $2,266,709 and $2,440,564, respectively, in passive income tax losses that were passed through to the investors and also provided $0.44 and $1.28, respectively, in tax credits per BAC to the investors. Series 19 experienced a decrease in the tax credits generated per BAC from calendar year 2005 to 2006. The Operating Partnerships were allocated tax credits for 10 years. Based on each Operating Partnership’s lease-up, the total credits could be spread over as many as 13 years. In cases where the actual number of years is more than 10, the credits delivered in the early and later years will

be less than the maximum allowable per year. The decrease in credits from calendar year 2005 to 2006 results from the fact some of the Operating Partnerships have entered their final years of credit. The decrease in tax credits generated per BAC is expected to continue until all credits have been realized and tax credits generated per BAC will be reduced to zero.

As of March 31, 2006 and 2005, Investments in Operating Partnerships for Series 19 was $2,127,018 and $8,251,109, respectively. Investments in Operating Partnerships are affected by the way the Fund accounts for these investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended December 31, 2005 and 2004, Series 19 reflects net loss from Operating Partnerships of $(2,530,854) and $(2,708,649), respectively, which includes depreciation and amortization of $3,157,456 and $3,160,742, respectively.

For the years ended March 31, 2006, 2005, and 2004, the net loss for series 19 was $6,459,685, $7,141,294, and $2,327,173, respectively. The major components of these amounts are the Fund’s share of income (losses) from Operating Partnership and the fund management fee.

Series 19 has invested in 3 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner initially was Reimer Calhoun, Jr. or an entity, which was affiliated with or controlled by Reimer Calhoun (the “Reimer Calhoun Group”). The Operating Partnerships are: Hebbronville Apts., Lone Star Seniors Apts., and Martindale Apts. The affordable housing properties owned by the Calhoun Partnerships are located in Texas and consist of approximately 68 apartment units in total. The low income housing tax credit available annually to Series 19 from the Calhoun Partnerships is approximately $78,750, which is approximately 1% of the total annual tax credit available to investors in Series 19.

sentence. Mr. Calhoun’s prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun’s controlling interest in the Operating General Partner has been assigned to Murray Calhoun, the son of Reimer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Carrollton Villa, L.P. (Carrollton Villa) located in Carrollton, Missouri, has historically operated below breakeven as a result of low occupancy and very low rent levels. Occupancy at the property averaged 70% in 2005. The primary problem is that Carrolton, Missouri, has experienced significant economic decline. All of the major employers have relocated and rent decreases were required to attract potential residents. The property has also

suffered from a poor reputation in the community. After the Operating General Partner interests were transferred to a non-profit agency in October 2004, management also changed. When the new management took over, they found numerous non-paying residents whom they had to evict. After this round of evictions, occupancy dropped and management has not been able to re-lease the units. In October 2005, Cohen Esrey, the property manager, stepped in as Operating General Partner. Upon the transfer of the Operating General Partner interest, the lender provided the property with grants in the amount of $75,000 for capital improvement needs. In the first quarter of 2006, management began the capital improvement plan that included painting all exterior doors, replacing shutters, installing new flag poles and other items that helped improve the property’s curb appeal. The new Operating General Partner has also changed the property’s name to Meadow Ridge in an effort to distance the property from its reputation. Management is currently offering one month free rent for a new resident as well as one-month free rent for resident referrals. They have expanded their outreach and advertising to attract potential residents from bordering communities. The property has also received an additional grant of $40,000 from the state to enable the property to reduce the rent for the residents but not lose any income. Management hopes that this grant will allow them to lease the vacant units. Upon transfer to the non-profit Operating General Partner, the mortgage became a cash flow only mortgage, which has helped in significantly reducing the negative cash flow. The mortgage will continue to be a cash flow only mortgage. The taxes, mortgage and insurance are all current.

Forest Associates Limited (Sharon Apartments) is a 24-unit apartment complex for families located in Forest, OH. The Investment Limited Partner is Boston Capital Tax Credit Fund III L.P. – Series 19. The property produced tax credits from 1994 through 2004 with compliance ending in 2008. In 2005 the property had an occupancy rate of 88%. In the first quarter of 2006 the property reflected an occupancy rate of 83%. Also, unbeknown to the Investment Limited Partner, the General Partner changed management firms effective January 1, 2006. The General Partner did not receive appropriate approval to change firms. The Investment Limited Partnership is working with the General Partner to resolve the issue. The Operating General Partner continues to fund deficiencies despite an expired guarantee.

Jeremy Associates, LP (Coopers Crossing Apartments) is a 93-unit family development located in Las Colinas, Texas. The average occupancy for this property in 2005 was 97%. Average occupancy for the first quarter 2006 was 97%. Occupancy has been higher due to victims of Hurricane Katrina coming to reside at the property. Despite the increase in occupancy levels, the property continues to operate below breakeven due to higher operating expenses. The property experiences high operating costs attributed to foundation and stress cracks identified in an engineer’s report issued in 2003. The report revealed foundation movement in five buildings. Between 2001 and 2003 a total of $61,310 in foundation work was completed. In 2004 capital expenditures reflect monies for immediate repair to rebuild three stair towers and two landings related to foundation movement at total cost of $23,140; and metal perimeter fence repair on the west side of the community that re-braced due to ground movement and car damage at total cost of $5,290 were completed in March 2004. Other capital work consisted of carpet replacements, vinyl replacement, boiler repairs, a new heat exchanger and swimming pool repair work related to code changes.

There was no foundation work completed in 2005. The overall estimate to complete the foundation work and address the interior issues as a result of the movement was estimated at $170,000. However, several emergency repairs were needed to rebuild three deteriorating stair towers, resulting from

foundation movement. The Operating General Partner continues to monitor movement in the five buildings identified in the engineer’s report and address the issues as they presented. In 2006, $111,300 in repairs were included in the budget to address the structural issues; however, to date the high operating expenses are not allowing for the cash to be available to make the improvements.

The Investment General Partner continues to visit the property and review the work completed to date. Discussions regarding the future improvements with the Operating General Partner are ongoing. The Investment General Partner will continue to work with the Operating General Partner through the completion of the improvements and the reduction of the operating expenses. The mortgage, trade payables, property taxes and insurance are current.

Munford Village, Ltd. (Munford Village) is a 24-unit family project in Munford, AL. The local economy has declined due to loss of industry. As a result, the property is struggling with occupancy. Occupancy averaged 90% in 2005, and dipped to 83% during the fourth quarter, due to evictions for non-payment of rent. Low rents, rental concessions, and rental delinquency has led to low economic occupancy. The current rent levels coupled with current concessions is not allowing the property to break even. Management has implemented a more stringent resident selection plan and is working to minimize delinquency. The property’s mortgage is current and the replacement reserve is adequately funded. However, the tax and insurance escrow account was under funded by $8,853, with insufficient cash to cover the accrued tax liability. The operating deficit is being funded with a cash overdraft, which is currently at $12,290. The bank allows an overdraft in an unlimited amount and for an unlimited period without interest charges. The operating deficit guarantee is unlimited in time and amount and the property’s compliance period ends in 2009.

Tanglewood Park (Willowood Park, LP) is a 130-unit family development located in Lawrenceville, Georgia, approximately 26 miles from downtown Atlanta. Occupancy suffered in the overheated competition of the Georgia market, hitting a low of 78% in July 2005. Consequently, the property had a shortfall of $82,590 as revenue fell and the property increased spending on turnover and marketing. The related-party management company hired a Vice President of Marketing and this property is one of six on a high priority list. Marketing efforts included outreach at job fairs and visitations with local employers. The company also targeted low-risk evacuees from Hurricane Katrina. Since executing this plan, occupancy rose, averaging 89% in the first quarter of 2006. The General Partner has continued to fund this property, with $158,718 in advances made to date.

Martindale Apartments is a 24-unit development located in Martindale, TX. The Investment Limited Partner is Boston Capital Tax Credit Fund III L.P. — Series 19. The property produced credits from 1994 through 2004 with compliance ending in 2009. In the first quarter of 2006 occupancy increased from 96% to 99%. The General Partner has an operating deficit guarantee which is unlimited in time and amount.

Hebbronville Apartments LTD is a 20 unit development located in Hebbronville, TX. The Investment Limited Partner is Boston Capital Tax Credit Fund III LP – Series 19. The property produced tax credits from 1994 through 2004 with compliance ending in 2009. In the first quarter of 2006, occupancy remains excellent at 100%; however, rents are stagnant and expenses are higher than state averages. The General Partner was able to secure rent increases at the property. On February 1, 2006 rents on one bedroom units increased from $431 to $468 and two bedroom units increased from $508 to $555. The increase should lead to improvements moving forward. The General Partner has an operating deficit guarantee which is unlimited in time and amount.

Contractual Obligations

As of March 31, 2006, the Fund has the following contractual obligations (payments due by period):


Obligation	Total		<1 year			1-3 years		3-5 years		> 5 years
Capital Contributions Payable	$	162,519	$	162,519			—		—		—
Asset Management Fees Payable to Affiliates	$	22,728,772	$	22,728,772	*		—		—		—


*		Although currently due, Accrued Asset Management Fees will be paid only to the extent that proceeds from the sale or refinance of an Operating Partnership become available.

Off Balance Sheet Arrangements

None.

Principal Accounting Policies and Estimates

The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which requires the Fund to make various estimates and assumptions. A summary of significant accounting policies is provided in Note A to the financial statements. The following section is a summary of some aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of the Fund’s financial condition and results of operations. The Fund believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.

The Fund is required to assess potential impairments to its long-lived assets, which is primarily investments in limited partnerships. The Fund accounts for its investment in limited partnerships in accordance with the equity method of accounting since the Fund does not control the operations of the Operating Limited Partnership.

If the book value of the Fund’s investment in an Operating Partnership exceeds the estimated value derived by management, which generally consists of the remaining future Low-Income Housing Credits allocable to the Fund and the estimated residual value to the Fund, the Fund reduces its investment in the Operating Limited Partnership and includes the reduction in equity in loss of investment of limited partnerships.

As of March 31, 2004, the Fund adopted FASB Interpretation No. 46 — Revised (“FIN46R”), “Consolidation of Variable Interest Entities.” FIN 46R provides guidance on when a company should include the assets, liabilities, and activities of a variable interest entity (“VIE”) in its financial statements and when it should disclose information about its relationship with a VIE. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it absorbs the majority of the entity’s expected losses, the majority of the expected returns, or both.

Based on the guidance of FIN 46R, the operating limited partnerships in which the Fund invests meet the definition of a VIE. However, management does not consolidate the Fund’s interests in these VIEs under FIN 46R, as it is not considered to be the primary beneficiary. The Fund currently records the amount of its investment in these partnerships as an asset on its balance sheet, recognizes its share of partnership income or losses in the statement of operations, and discloses how it accounts for material types of these investments in its financial statements.

The Fund’s balance in investment in operating limited partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Fund’s exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the local general partners and their guarantee against credit recapture.

Item 7a.

Quantitative and Qualitative Disclosure About Market Risk- Not Applicable

Item 8.		Financial Statements and Supplementary Data

		The information required by this item is contained in Part IV, Item 14 of this Annual Report on Form 10-K.

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure — None

Item 9a.

Controls & Procedures

	(a)		Evaluation of Disclosure Controls and Procedures

			As of the end of the period covered by this report, the Fund’s General Partner, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer of C&M Management, Inc., carried out an evaluation of the effectiveness of the Fund’s “disclosure controls and procedures” as defined in the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer have concluded that as of the end of the period covered by this report, the Fund’s disclosure controls and procedures were adequate and effective in timely alerting them to material information relating to the Fund required to be included in the Fund’s periodic SEC filings.

	(b)		Changes in Internal Controls

			There were no changes in the Fund’s internal control over financial reporting that occurred during the quarter ended March 31, 2006 that materially affected, or are reasonably likely to materially affect, the Fund’s internal control over financial reporting.

PART III


Item 10.		Directors and Executive Officers of the Registrant (a), (b), (c), (d) and (e)

The Fund has no directors or executives officers of its own. The following biographical information is presented for the partners of the General Partners and affiliates of those partners (including Boston Capital Partners, Inc. (“Boston Capital”)) with principal responsibility for the Fund’s affairs.

John P. Manning, age 57, is co-founder, and since 1974 has been the President and Chief Executive Officer, of Boston Capital Corporation. As founding CEO of Boston Capital, Mr. Manning’s primary responsibilities include strategic planning, business development and the continued oversight of new opportunities. In addition to his responsibilities at Boston Capital Corporation, Mr. Manning is a proactive leader in the multifamily real estate industry. He served in 1990 as a member of the Mitchell-Danforth Task Force, which reviewed and suggested reforms to the Low Income Housing Tax Credit program. He was the founding President of the Affordable Housing Tax Credit Coalition and is a former member of the board of the National Leased Housing Association. During the 1980s, he served as a member of the Massachusetts Housing Policy Committee as an appointee of the Governor of Massachusetts. In addition, Mr. Manning has testified before the U.S. House Ways and Means Committee and the U.S. Senate Finance Committee on the critical role of the private sector in the success of the Low Income Housing Tax Credit. In 1996, President Clinton appointed him to the President’s Advisory Committee on the Arts at the John F. Kennedy Center for the Performing Arts. In 1998, President Clinton appointed Mr. Manning to the President’s Export Council, the premiere committee comprised of major corporate CEOs that advise the President on matters of foreign trade and commerce. In 2003, he was appointed by Boston Mayor Tom Menino to the Mayors Advisory Panel on Housing. Mr. Manning sits on the Board of Directors of the John F. Kennedy Presidential Library in Boston where he serves as Chairman of the Distinguished Visitors Program. He is also on the Board of Directors of the Beth Israel Deaconess Medical Center in Boston. Mr. Manning is a graduate of Boston College.

Mr. Manning is the managing member of Boston Associates. Mr. Manning is also the principal of Boston Capital Corporation. While Boston Capital is not a direct subsidiary of Boston Capital Corporation, each of the entities is under the common control of Mr. Manning.

Richard J. DeAgazio, age 61, has been the Executive Vice President of Boston Capital Corporation, and President of Boston Capital Securities, Inc., Boston Capital’s NASD registered broker/dealer, since 1981. Mr. DeAgazio formerly served on the national Board of Governors of the National Association of Securities Dealers (NASD). He recently served as a member of the National Adjudicatory Council of the NASD. He was the Vice Chairman of the NASD’s District 11 Committee, and served as Chairman of the NASD’s Statutory Disqualification Subcommittee of the National Business Conduct Committee. He also served on the NASD State Liaison Committee, the Direct Participation Program Committee and as Chairman of the Nominating Committee. He is a past President of the Real Estate Securities and Syndication Institute and a founder and past President of the National Real Estate Investment Association, as well as past President of the Real Estate Securities and Syndication Institute (Massachusetts Chapter). Prior to joining Boston Capital in 1981, Mr. DeAgazio was the Senior Vice President and Director of the Brokerage Division of Dresdner Securities (USA), Inc., an international investment banking firm owned by four major European banks, and was a Vice President of

Burgess & Leith/Advest. He has been a member of the Boston Stock Exchange since 1967. He is on the Board of Directors of Cognistar Corporation. He is a leader in the community and serves on the Board of Trustees for Bunker Hill Community College, the Business Leaders Council of the Boston Symphony, Board of Trustees of Junior Achievement of Northern New England and the Board of Advisors for the Ron Burton Training Village, and is on the Board of Corporators of Northeastern University. He graduated from Northeastern University.

Jeffrey H. Goldstein, age 44, is Chief Operating Officer and has been the Director of Real Estate of Boston Capital Corporation since 1996. He directs Boston Capital Corporation’s comprehensive real estate services, which include all aspects of origination, underwriting, due diligence and acquisition. As COO, Mr. Goldstein is responsible for the financial and operational areas of Boston Capital Corporation and assists in the design and implementation of business development and strategic planning objectives. Mr. Goldstein previously served as the Director of the Asset Management division as well as the head of the dispositions and troubled assets group. Utilizing his 16 years experience in the real estate syndication and development industry, Mr. Goldstein has been instrumental in the diversification and expansion of Boston Capital Corporation’s businesses. Prior to joining Boston Capital Corporation in 1990, Mr. Goldstein was Manager of Finance for A.J. Lane & Co., where he was responsible for placing debt on all new construction projects and debt structure for existing apartment properties. Prior to that, he served as Manager for Homeowner Financial Services, a financial consulting firm for residential and commercial properties, and worked as an analyst responsible for budgeting and forecasting for the New York City Council Finance Division. He graduated from the University of Colorado and received his MBA from Northeastern University.

Kevin P. Costello, age 59, is Executive Vice President and has been the Director of Institutional Investing of Boston Capital Corporation since 1992 and serves on the firm’s Executive Committee. He is responsible for all corporate investment activity and has spent over 20 years in the real estate syndication and investment business. Mr. Costello’s prior responsibilities at Boston Capital Corporation have involved the management of the Acquisitions Department and the structuring and distribution of conventional and tax credit private placements. Prior to joining Boston Capital Corporation in 1987, he held positions with First Winthrop, Reynolds Securities and Bache & Company. Mr. Costello graduated from Stonehill College and received his MBA with honors from Rutgers’ Graduate School of Business Administration.

Marc N. Teal, age 42, has been Chief Financial Officer of Boston Capital Corporation since May 2003. Mr. Teal previously served as Senior Vice President and Director of Accounting and prior to that served as Vice President of Partnership Accounting. He has been with Boston Capital Corporation since 1990. In his current role as CFO he oversees all of the accounting, financial reporting, SEC reporting, budgeting, audit, tax and compliance for Boston Capital, its affiliated entities and all Boston Capital sponsored programs. Additionally, Mr. Teal is responsible for maintaining all banking and borrowing relationships of Boston Capital Corporation and treasury management of all working capital reserves. He also oversees Boston Capital’s information and technology areas, including the strategic planning for Boston Capital Corporation and its affiliaties. Prior to joining Boston Capital in 1990, Mr. Teal was a Senior Accountant for Cabot, Cabot & Forbes, a multifaceted real estate company, and prior to that was a Senior Accountant for Liberty Real Estate Corp. He received a Bachelor of Science Accountancy from Bentley College and a Masters in Finance from Suffolk University.

(f)		Involvement in certain legal proceedings.

		None.

(g)		Promoters and control persons.

		None.

(h) and (i)		The Fund has no directors or executive officers and accordingly has no audit committee and no audit committee financial expert. The Fund is not a listed issuer as defined in Regulation 10A-3 promulgated under the Securities Exchange Act of 1934.

		The General Partner of the Fund, Boston Capital Associates LP, has adopted a Code of Ethics which applies to the Principal Executive Officer and Principal Financial Officer of C&M Management, Inc. The Code of Ethics will be provided without charge to any person who requests it. Such request should be directed to, Marc N. Teal Boston Capital Corp. One Boston Place Boston, MA 02108.

Item 11.		Executive Compensation

		(a), (b), (c), (d) and (e)

The Fund has no officers or directors. However, under the terms of the Amended and Restated Agreement and Certificate of Limited Partnership of the Fund, the Fund has paid or accrued obligations to the General Partner and its affiliates for the following fees during the 2006 fiscal year:

1. An annual fund management fee based on .5 percent of the aggregate cost of all Apartment Complexes acquired by the Operating Partnerships has been accrued or paid to Boston Capital Asset Management Limited Partnership. The annual fund management fee charged to operations, net of reporting fees received, during the year ended March 31, 2006 was $2,098,275.

2. The Fund has reimbursed an affiliate of the General Partner a total of $150,972 for amounts charged to operations during the year ended March 31, 2006. The reimbursement includes postage, printing, travel, and overhead allocations.

3. The Partnership had previously recorded and paid $42,527, to BCAMLP in connection with the disposition of certain Operating Partnerships, which were incorrectly referred to as sale prep fees. The payments were actually for reimbursement of overhead and salary expenses incurred by Boston Capital and its Affiliates in connection with the disposition of the related Operating Partnerships.

During the current period, management of Boston Capital decided to discontinue requesting reimbursement for overheard and salary expenses related to the disposition of assets. Additionally, Boston Capital’s management has decided to reimburse all previous reimbursements for such items by reducing other liabilities due to Boston Capital and its Affiliates from the Partnership.


Item 12.		Security Ownership of Certain Beneficial Owners and Management

	(a)		Security ownership of certain beneficial owners.

			As of March 31, 2006, 21,996,102 BACs had been issued. The following Series are known to have one investor with holdings in excess of 5% of the total outstanding BACs in the series.


Series	% of BACs held
Series 15		7.58	%
Series 16		9.27	%
Series 17		8.87	%
Series 18		8.46	%
Series 19		8.66	%

	(b)		Security ownership of management.

			The General Partner has a 1% interest in all Profits, Losses, Credits and distributions of the Fund. The Funds’s response to Item 12(a) is incorporated herein by reference.

	(c)		Changes in control.

There exists no arrangement known to the Fund the operation of which may at a subsequent date result in a change in control of the Fund. There is a provision in the Limited Partnership Agreement which allows, under certain circumstances, the ability to change control.

The Fund has no compensation plans under which interests in the Fund are authorized for issuance.


Item 13.		Certain Relationships and Related Transactions

(a)

Transactions with management and others.

The Fund has no officers or directors. However, under the terms of the Public Offering, various kinds of compensation and fees are payable to the General Partner and its Affiliates during the organization and operation of the Fund. Additionally, the General Partner will receive distributions from the Fund if there is cash available for distribution or residual proceeds as defined in the Partnership Agreement. The amounts and kinds of compensation and fees are described on page 26 of the Prospectus, as supplemented, under the caption “Compensation and Fees”, which is incorporated herein by reference. See Note C of Notes to Financial Statements in Item 14 of this Annual Report on Form 10-K for amounts accrued or paid to the General Partner and its affiliates during the period from April 1, 1995 through March 31, 2006.

	(b)		Certain business relationships.

			The Fund response to Item 13(a) is incorporated herein by reference.

	(c)		Indebtedness of management.

			None.

	(d)		Transactions with promoters.

			Not applicable.


Item 14.		Principal Accountant Fees and Services

Fees paid to the Fund’s independent auditors for Fiscal year 2006 were comprised of the following


Fee Type	Ser. 15		Ser. 16		Ser. 17		Ser. 18		Ser. 19
Audit Fees	$	28,260	$	28,500	$	22,780	$	17,780	$	15,130
Audit Related Fees		—		—		—		—		—
Tax Fees		13,725		13,200		10,400		7,950		6,550
All Other Fees		—		—		—		—		—

Total	$	41,985	$	41,700	$	33,180	$	25,730	$	21,680

Fees paid to the Fund’s independent auditors for Fiscal year 2005 were comprised of the following

Fee Type


Audit Fees	$	28,260	$	28,500	$	22,780	$	17,780	$	15,130
Audit Related Fees		1,200		1,200		1,200		1,200		1,200
Tax Fees		12,755		12,260		9,620		7,310		5,990
All Other Fees		—		—		—		—		—

Total	$	42,215	$	41,960	$	33,600	$	26,290	$	22,320

Audit Committee

The Fund has no Audit Committee. All audit services and any permitted non-audit services performed by the Fund’s independent auditors are pre-approved by C&M Management, Inc.

PART IV


Item 15.		Exhibits, Financial Statement Schedules, and Reports on Form 8-K

(a) 1 and 2. Financial Statements and Financial Statement Schedules, filed herein as Exhibit 13 —

Balance Sheets, March 31, 2006 and 2005

Statements of Operations for the years ended March 31, 2006, 2005, and 2004.

Statements of Changes in Partners’ Capital for the years ended March 31, 2006, 2005, and 2004.

Statements of Cash Flows for the years ended March 31, 2006, 2005, and 2004.

Notes to Financial Statements March 31, 2006, 2005, and 2004

Schedule III — Real Estate and Accumulated Depreciation

Notes to Schedule III

Schedules not listed are omitted because of the absence of the conditions under which they are required or because the information is included in the financial statements or the notes hereto.

(b) 1 Reports on Form 8-K

There were no reports on Form 8-K filed for the period ended March 31, 2006

(c)

1. Exhibits (listed according to the number assigned in the table in Item 601 of Regulation S-K)

Exhibit No. 3 — Organization Documents.

Certificate of Limited Partnership of Boston Capital Tax Credit Fund III L.P. (Incorporated by reference from Exhibit 3 to the Fund’s Registration Statement No. 33-42999 on Form S-11 as filed with the Securities and Exchange Commission on September 26, 1991.)

Exhibit No. 4 — Instruments defining the rights of security holders, including indentures.

Agreement of Limited Partnership of Boston Capital Tax Credit Fund III L.P. (Incorporated by reference from Exhibit 4 to the Fund’s Registration Statement No. 33-42999 on Form S-11 as filed with the Securities and Exchange Commission on September 26, 1991.)

Exhibit No. 10 — Material contracts.

Beneficial Assignee Certificate. (Incorporated by reference from Exhibit 10A to the Fund’s Registration Statement No. 33-42999 on Form S-11 as filed with the Securities and Exchange Commission on September 26, 1991.)

Exhibit No. 13 — Financial Statements.

Financial Statement of Boston Capital Tax Credit Fund III L.P., filed herein

Exhibit No. 23 Consents of experts and counsel.

Independent Auditor’s Reports for Operating Partnerships, filed herein.

Exhibit No. 28 — Additional exhibits.

	a.		Agreement of Limited Partnership of Branson Christian County (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on April 4, 1994).

	b.		Agreement of Limited Partnership of Peachtree L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on April 4, 1994).

	c.		Agreement of Limited Partnership of Cass Partners, L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on April 7, 1994).

	d.		Agreement of Limited Partnership of Sable Chase of McDonough L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on April 8, 1994).

	e.		Agreement of Limited Partnership of Ponderosa Meadows Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on April 12, 1994).

	f.		Agreement of Limited Partnership of Hackley-Barclay LDHA (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on April 14, 1994).

	g.		Agreement of Limited Partnership of Sugarwood Park (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on May 12, 1994).

	h.		Agreement of Limited Partnership of West End Manor of Union Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on May 29, 1994).

	i.		Agreement of Limited Partnership of Vista Loma (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on May 31, 1994).

	j.		Agreement of Limited Partnership of Palmetto Properties (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on June 16, 1994).

	k.		Agreement of Limited Partnership of Jefferson Square (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on June 27, 1994).

	l.		Agreement of Limited Partnership of Holts Summit Square (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on June 27, 1994).

	m.		Agreement of Limited Partnership of Harris Housing (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on July 8, 1994).

	n.		Agreement of Limited Partnership of Branson Christian County II (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on September 1, 1994).

	o.		Agreement of Limited Partnership of Chelsea Square (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on September 12, 1994).

	p.		Agreement of Limited Partnership of Palatine Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on September 21, 1994).

	q.		Agreement of Limited Partnership of Mansura Villa II Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on October 19, 1994).

	r.		Agreement of Limited Partnership of Haynes House Associates II Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on October 25, 1994).

	s.		Agreement of Limited Partnership of Skowhegan Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on October 28, 1994).

	t.		Agreement of Limited Partnership of Mt. Vernon Associates, L.P.(Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on November 19, 1994).

	u.		Agreement of Limited Partnership of Clinton Estates, L.P.(Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on February 1, 1995.)

Exhibit No. 31 Certification 302

	a.		Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herein

	b.		Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herein

Exhibit No. 32 Certification 906

	a.		Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herein

	b.		Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herein

SIGNATURES

Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the Fund has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.


	Boston Capital Tax Credit Fund III L.P.

	By:	Boston Capital Associates III L.P.
		General Partner

	By:	BCA Associates Limited Partnership,
		General Partner

	By:	C&M Management Inc.,
Date:		General Partner

December 21, 2006	By:	/s/ John P. Manning


		John P. Manning

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Fund and in the capacities and on the dates indicated:


DATE:	SIGNATURE:	TITLE:

December 21, 2006	/s/ John P. Manning John P. Manning	Director, President (Principal Executive Officer) C&M Management Inc.; Director, President (Principal Executive Officer) BCTC III Assignor Corp.


DATE:	SIGNATURE:	TITLE:

December 21, 2006	/s/ Marc N. Teal Marc N. Teal	Chief Financial Officer (Principal Financial and Accounting Officer) C&M Management Inc.; Chief Financial Officer (Principal Financial and Accounting Officer) BCTC III Assignor Corp.

EX-13 2 b61524bcexv13.htm EX-13 FINANCIAL STATEMENTS EX-13 Financial Statements

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

March 31, 2006, 2005 and 2004

FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS’ REPORT

BOSTON CAPITAL TAX CREDIT FUND III L.P. -
SERIES 15 THROUGH SERIES 19

MARCH 31, 2006 AND 2005

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

March 31, 2006, 2005 and 2004

TABLE OF CONTENTS


	PAGE
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		F-3

FINANCIAL STATEMENTS

BALANCE SHEETS		F-5

STATEMENTS OF OPERATIONS		F-11

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)		F-17

STATEMENTS OF CASH FLOWS		F-23

NOTES TO FINANCIAL STATEMENTS		F-29

SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION		F-71

NOTES TO SCHEDULE III

Schedules not listed are omitted because of the absence of the conditions under which they are required or because the information is included in the financial statements or the notes thereto.

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners Boston Capital Tax Credit Fund III L.P.

We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19, in total and for each series, as of March 31, 2006 and 2005, and the related statements of operations, changes in partners’ capital and cash flows for the total partnership and for each of the series for each of the three years in the period ended March 31, 2006. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the financial statements of certain operating limited partnerships which investments represent $1,411,770 and $4,977,942 of the total partnership assets as of March 31, 2006 and 2005, respectively, and $(1,029,722), $(1,183,870) and $(4,823,952), of the total partnership loss for the years ended March 31, 2006, 2005 and 2004, respectively; of the assets for Series 15 as of March 31, 2006 and 2005, $470,219 and $1,117,044, respectively, and of the loss for Series 15 for the years ended March 31, 2006, 2005 and 2004, $(371,366), $(342,864) and $(375,084), respectively; of the assets for Series 16 as of March 31, 2006 and 2005, $0 and $0, respectively, and of the loss for Series 16 for the years ended March 31, 2006, 2005 and 2004, $0, $(255,186) and $(1,419,520), respectively; of the assets for Series 17 as of March 31, 2006 and 2005, $468,682 and $1,406,061, respectively, and of the loss for Series 17 for the years ended March 31, 2006, 2005 and 2004, $(350,453), $(271,167) and $(818,796), respectively; of the assets for Series 18 as of March 31, 2006 and 2005, $143,473 and $0, respectively, and of the loss for Series 18 for the years ended March 31, 2006, 2005 and 2004, $(120,686), $(187,413) and $(1,260,419), respectively; and of the assets for Series 19 as of March 31, 2006 and 2005, $329,396 and $2,454,837, respectively, and of the loss for Series 19 for the years ended March 31, 2006, 2005 and 2004, $(187,217), $(127,240) and $(950,133), respectively. Those statements were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to those operating limited partnerships, is based solely on the reports of the other auditors.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal controls over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence

F-3

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports of the other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audits and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund III L.P. — Series 15 through Series 19, in total and for each series, as of March 31, 2006 and 2005, and the results of its operations and its cash flows for the total partnership and for each of the series for each of the three years in the period ended March 31, 2006, in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules listed under Item 15 (a) in the index are presented for the purpose of complying with the Securities and Exchange Commission’s rules and are not part of the basic financial statements. These schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, based on our audit and the reports of other auditors, fairly state in all material respects the financial data required to be set forth therein in relation to the basic financial statements taken as a whole.

/s/Reznick Group, P.C.

Bethesda, Maryland
November 30, 2006

F-4

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

BALANCE SHEETS

March 31, 2006 and 2005


	Total
	2006			2005
ASSETS

INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	7,337,365		$	21,243,365

OTHER ASSETS
Cash and cash equivalents		3,292,462			3,776,197
Notes receivable		—			201,109
Deferred acquisition costs, net of accumulated amortization		861,443			913,828
Other assets		78,475			1,455,952


	$	11,569,745		$	27,590,451


LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	41,411		$	1,145
Accounts payable — affiliates		23,452,067			21,838,219
Capital contributions payable		162,519			163,019


		23,655,997			22,002,383


PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 21,996,102 issued to the assignees at March 31, 2006 and 2005		—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and outstanding at March 31, 2006 and 2005		(10,077,051	)		7,420,525
General partner		(2,009,201	)		(1,832,457	)


		(12,086,252	)		5,588,068


	$	11,569,745		$	27,590,451

(continued)

F-5

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

BALANCE SHEETS — CONTINUED

March 31, 2006 and 2005


	Series 15
	2006			2005
ASSETS

INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	594,892		$	1,479,898

OTHER ASSETS
Cash and cash equivalents		1,262,471			1,637,682
Notes receivable		—			—
Deferred acquisition costs, net of accumulated amortization		126,263			133,915
Other assets		27,002			21,368


	$	2,010,628		$	3,272,863


LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	1,145		$	1,145
Accounts payable — affiliates		5,602,855			5,500,694
Capital contributions payable		4,208			4,208


		5,608,208			5,506,047


PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 3,870,500 issued to the assignees at March 31, 2006 and 2005		—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued and outstanding at March 31, 2006 and 2005		(3,230,009	)		(1,879,257	)
General partner		(367,571	)		(353,927	)


		(3,597,580	)		(2,233,184	)


	$	2,010,628		$	3,272,863

(continued)

F-6

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

BALANCE SHEETS — CONTINUED

March 31, 2006 and 2005


	Series 16
	2006			2005
ASSETS

INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	1,974,221		$	4,684,946

OTHER ASSETS
Cash and cash equivalents		572,534			386,390
Notes receivable		—			—
Deferred acquisition costs, net of accumulated amortization		174,902			185,502
Other assets		—			110,860


	$	2,721,657		$	5,367,698


LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	40,266		$	—
Accounts payable — affiliates		6,270,924			5,678,945
Capital contributions payable		71,862			72,362


		6,383,052			5,751,307


PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 5,429,402 issued to the assignees at March 31, 2006 and 2005		—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and outstanding at March 31, 2006 and 2005		(3,158,172	)		86,836
General partner		(503,223	)		(470,445	)


		(3,661,395	)		(383,609	)


	$	2,721,657		$	5,367,698

(continued)

F-7

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

BALANCE SHEETS — CONTINUED

March 31, 2006 and 2005


	Series 17
	2006			2005
ASSETS

INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	1,915,188		$	4,891,801

OTHER ASSETS
Cash and cash equivalents		1,238,050			1,549,157
Notes receivable		—			201,109
Deferred acquisition costs, net of accumulated amortization		180,996			192,310
Other assets		46,473			1,233,966


	$	3,380,707		$	8,068,343


LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Accounts payable — affiliates		6,120,716			5,946,771
Capital contributions payable		67,895			67,895


		6,188,611			6,014,666


PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 5,000,000 issued to the assignees at March 31, 2006 and 2005		—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued and outstanding at March 31, 2006 and 2005		(2,350,393	)		2,462,572
General partner		(457,511	)		(408,895	)


		(2,807,904	)		2,053,677


	$	3,380,707		$	8,068,343

(continued)

F-8

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

BALANCE SHEETS — CONTINUED

March 31, 2006 and 2005


	Series 18
	2006			2005
ASSETS

INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	726,046		$	1,935,611

OTHER ASSETS
Cash and cash equivalents		72,064			71,958
Notes receivable		—			—
Deferred acquisition costs, net of accumulated amortization		138,449			146,843
Other assets		5,000			88,604


	$	941,559		$	2,243,016


LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Accounts payable — affiliates		3,591,559			3,182,144
Capital contributions payable		18,554			18,554


		3,610,113			3,200,698


PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 3,616,200 issued to the assignees at March 31, 2006 and 2005		—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,616,200 issued and outstanding at March 31, 2006 and 2005		(2,331,641	)		(637,878	)
General partner		(336,913	)		(319,804	)


		(2,668,554	)		(957,682	)


	$	941,559		$	2,243,016

(continued)

F-9

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

BALANCE SHEETS — CONTINUED

March 31, 2006 and 2005


	Series 19
	2006			2005
ASSETS

INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	2,127,018		$	8,251,109

OTHER ASSETS
Cash and cash equivalents		147,343			131,010
Notes receivable		—			—
Deferred acquisition costs, net of accumulated amortization		240,833			255,258
Other assets		—			1,154


	$	2,515,194		$	8,638,531


LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Accounts payable — affiliates		1,866,013			1,529,665
Capital contributions payable		—			—


		1,866,013			1,529,665

PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 4,080,000 issued to the assignees at March 31, 2006 and 2005		—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,080,000 issued and outstanding at March 31, 2006 and 2005		993,164			7,388,252
General partner		(343,983	)		(279,386	)


		649,181			7,108,866


	$	2,515,194		$	8,638,531

See notes to financial statements

F-10

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF OPERATIONS

Years ended March 31, 2006, 2005 and 2004


	Total
	2006			2005			2004
Income
Interest income	$	17,903		$	9,210		$	12,206
Other income		32,509			15,730			17,897


Total income		50,412			24,940			30,103


Share of losses from operating limited partnerships		(3,518,129	)		(12,401,037	)		(9,459,170	)


Expenses
Professional fees		292,370			210,010			219,655
Partnership management fee		2,098,275			1,666,693			2,202,369
Amortization		52,384			354,082			68,754
Impairment loss		11,603,236			18,797,540			1,136,378
General and administrative expenses		160,338			146,436			191,263


		14,206,603			21,174,761			3,818,419


NET LOSS	$	(17,674,320	)	$	(33,550,858	)	$	(13,247,486	)


Net loss allocated to general partner	$	(176,744	)	$	(335,508	)	$	(132,474	)


Net loss allocated to assignees	$	(17,497,576	)	$	(33,215,350	)	$	(13,115,012	)


Net loss per BAC	$	(0.80	)	$	(1.51	)	$	(0.60	)

(continued)

F-11

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF OPERATIONS — CONTINUED

Years ended March 31, 2006, 2005 and 2004


	Series 15
	2006			2005			2004
Income
Interest income	$	6,699		$	2,762		$	3,752
Other income		175			6,415			3,055


Total income		6,874			9,177			6,807


Share of losses from operating limited partnerships		(301,091	)		(3,263,652	)		(1,044,879	)


Expenses
Professional fees		63,873			45,203			48,823
Partnership management fee		427,061			186,914			462,499
Amortization		7,652			60,550			10,511
Impairment loss		540,269			1,542,187			—
General and administrative expenses		31,324			29,575			44,282


		1,070,179			1,864,429			566,115


NET LOSS	$	(1,364,396	)	$	(5,118,904	)	$	(1,604,187	)


Net loss allocated to general partner	$	(13,644	)	$	(51,189	)	$	(16,042	)


Net loss allocated to assignees	$	(1,350,752	)	$	(5,067,715	)	$	(1,588,145	)


Net loss per BAC	$	(0.35	)	$	(1.32	)	$	(0.41	)

(continued)

F-12

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF OPERATIONS — CONTINUED

Years ended March 31, 2006, 2005 and 2004


	Series 16
	2006			2005			2004
Income
Interest income	$	3,019		$	2,507		$	2,995
Other income		2,637			2,253			4,610


Total income		5,656			4,760			7,605


Share of losses from operating limited partnerships		(302,965	)		(1,548,383	)		(2,471,947	)


Expenses
Professional fees		65,259			44,700			44,282
Partnership management fee		550,166			593,725			598,700
Amortization		10,600			126,268			16,851
Impairment loss		2,317,370			5,216,286			310,154
General and administrative expenses		37,082			33,026			45,110


		2,980,477			6,014,005			1,015,097


NET LOSS	$	(3,277,786	)	$	(7,557,628	)	$	(3,479,439	)


Net loss allocated to general partner	$	(32,778	)	$	(75,576	)	$	(34,794	)


Net loss allocated to assignees	$	(3,245,008	)	$	(7,482,052	)	$	(3,444,645	)


Net loss per BAC	$	(0.60	)	$	(1.38	)	$	(0.63	)

(continued)

F-13

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF OPERATIONS — CONTINUED

Years ended March 31, 2006, 2005 and 2004


	Series 17
	2006			2005			2004
Income
Interest income	$	6,253		$	2,506		$	3,317
Other income		5,839			1,210			5,384


Total income		12,092			3,716			8,701


Share of losses from operating limited partnerships		(696,243	)		(3,737,706	)		(2,291,175	)


Expenses
Professional fees		55,452			40,377			41,377
Partnership management fee		456,419			199,263			478,680
Amortization		11,312			87,588			15,550
Impairment loss		3,620,144			3,301,027			87,340
General and administrative expenses		34,103			31,089			45,423


		4,177,430			3,659,344			668,370


NET LOSS	$	(4,861,581	)	$	(7,393,334	)	$	(2,950,844	)


Net loss allocated to general partner	$	(48,616	)	$	(73,933	)	$	(29,508	)


Net loss allocated to assignees	$	(4,812,965	)	$	(7,319,401	)	$	(2,921,336	)


Net loss per BAC	$	(0.96	)	$	(1.46	)	$	(0.58	)

(continued)

F-14

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF OPERATIONS — CONTINUED

Years ended March 31, 2006, 2005 and 2004


	Series 18
	2006			2005			2004
Income
Interest income	$	689		$	533		$	894
Other income		10,855			352			2,448


Total income		11,544			885			3,342


Share of losses from operating limited partnerships		(543,556	)		(1,905,671	)		(1,890,630	)


Expenses
Professional fees		41,803			48,159			50,624
Partnership management fee		354,643			358,581			323,356
Amortization		8,391			65,247			11,414
Impairment loss		747,347			3,936,899			584,884
General and administrative expenses		26,676			26,026			28,277


		1,178,860			4,434,912			998,555


NET LOSS	$	(1,710,872	)	$	(6,339,698	)	$	(2,885,843	)


Net loss allocated to general partner	$	(17,109	)	$	(63,397	)	$	(28,858	)


Net loss allocated to assignees	$	(1,693,763	)	$	(6,276,301	)	$	(2,856,985	)


Net loss per BAC	$	(0.47	)	$	(1.74	)	$	(0.79	)

(continued)

F-15

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF OPERATIONS — CONTINUED

Years ended March 31, 2006, 2005 and 2004


	Series 19
	2006			2005			2004
Income
Interest income	$	1,243		$	902		$	1,248
Other income		13,003			5,500			2,400


Total income		14,246			6,402			3,648


Share of losses from operating limited partnerships		(1,674,274	)		(1,945,625	)		(1,760,539	)


Expenses
Professional fees		65,983			31,571			34,549
Partnership management fee		309,986			328,210			339,134
Amortization		14,429			14,429			14,428
Impairment loss		4,378,106			4,801,141			154,000
General and administrative expenses		31,153			26,720			28,171


		4,799,657			5,202,071			570,282


NET LOSS	$	(6,459,685	)	$	(7,141,294	)	$	(2,327,173	)


Net loss allocated to general partner	$	(64,597	)	$	(71,413	)	$	(23,272	)


Net loss allocated to assignees	$	(6,395,088	)	$	(7,069,881	)	$	(2,303,901	)


Net loss per BAC	$	(1.57	)	$	(1.73	)	$	(0.56	)

See notes to financial statements

F-16

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

Years ended March 31, 2006, 2005 and 2004


				General
Total	Assignees			partner			Total
Partners’ capital (deficit), March 31, 2003	$	53,883,221		$	(1,364,475	)	$	52,518,746

Net loss		(13,115,012	)		(132,474	)		(13,247,486	)


Partners’ capital (deficit), March 31, 2004		40,768,209			(1,496,949	)		39,271,260

Distributions to partners		(132,334	)		—			(132,334	)

		(33,215,350	)		(335,508	)		(33,550,858	)


Partners’ capital (deficit), March 31, 2005		7,420,525			(1,832,457	)		5,588,068

Net loss		(17,497,576	)		(176,744	)		(17,674,320	)


Partners’ capital (deficit), March 31, 2006	$	(10,077,051	)	$	(2,009,201	)	$	(12,086,252	)

(continued)

F-17

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) — CONTINUED

Years ended March 31, 2006, 2005 and 2004


				General
Series 15	Assignees			partner			Total
Partners’ capital (deficit), March 31, 2003	$	4,884,170		$	(286,696	)	$	4,597,474

Net loss		(1,588,145	)		(16,042	)		(1,604,187	)


Partners’ capital (deficit), March 31, 2004		3,296,025			(302,738	)		2,993,287

Distributions to partners		(107,567	)		—			(107,567	)

		(5,067,715	)		(51,189	)		(5,118,904	)


Partners’ capital (deficit), March 31, 2005		(1,879,257	)		(353,927	)		(2,233,184	)

Net loss		(1,350,752	)		(13,644	)		(1,364,396	)


Partners’ capital (deficit), March 31, 2006	$	(3,230,009	)	$	(367,571	)	$	(3,597,580	)

(continued)

F-18

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) — CONTINUED

Years ended March 31, 2006, 2005 and 2004


				General
Series 16	Assignees			partner			Total
Partners’ capital (deficit), March 31, 2003	$	11,013,533		$	(360,075	)	$	10,653,458

Net loss		(3,444,645	)		(34,794	)		(3,479,439	)


Partners’ capital (deficit), March 31, 2004		7,568,888			(394,869	)		7,174,019

Distributions to partners		—			—			—

		(7,482,052	)		(75,576	)		(7,557,628	)


Partners’ capital (deficit), March 31, 2005		86,836			(470,445	)		(383,609	)

Net loss		(3,245,008	)		(32,778	)		(3,277,786	)


Partners’ capital (deficit), March 31, 2006	$	(3,158,172	)	$	(503,223	)	$	(3,661,395	)

(continued)

F-19

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) — CONTINUED

Years ended March 31, 2006, 2005 and 2004


				General
Series 17	Assignees			partner			Total
Partners’ capital (deficit), March 31, 2003	$	12,728,076		$	(305,454	)	$	12,422,622

Net loss		(2,921,336	)		(29,508	)		(2,950,844	)


Partners’ capital (deficit), March 31, 2004		9,806,740			(334,962	)		9,471,778

Distributions to partners		(24,767	)		—			(24,767	)

		(7,319,401	)		(73,933	)		(7,393,334	)


Partners’ capital (deficit), March 31, 2005		2,462,572			(408,895	)		2,053,677

Net loss		(4,812,965	)		(48,616	)		(4,861,581	)


Partners’ capital (deficit), March 31, 2006	$	(2,350,393	)	$	(457,511	)	$	(2,807,904	)

(continued)

F-20

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) — CONTINUED

Years ended March 31, 2006, 2005 and 2004


				General
Series 18	Assignees			partner			Total
Partners’ capital (deficit), March 31, 2003	$	8,495,408		$	(227,549	)	$	8,267,859

Net loss		(2,856,985	)		(28,858	)		(2,885,843	)


Partners’ capital (deficit), March 31, 2004		5,638,423			(256,407	)		5,382,016

Distributions to partners		—			—			—
		(6,276,301	)		(63,397	)		(6,339,698	)


Partners’ capital (deficit), March 31, 2005		(637,878	)		(319,804	)		(957,682	)

Net loss		(1,693,763	)		(17,109	)		(1,710,872	)


Partners’ capital (deficit), March 31, 2006	$	(2,331,641	)	$	(336,913	)	$	(2,668,554	)

(continued)

F-21

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) — CONTINUED

Years ended March 31, 2006, 2005 and 2004


				General
Series 19	Assignees			partner			Total
Partners’ capital (deficit), March 31, 2003	$	16,762,034		$	(184,701	)	$	16,577,333

Net loss		(2,303,901	)		(23,272	)		(2,327,173	)


Partners’ capital (deficit), March 31, 2004		14,458,133			(207,973	)		14,250,160

Distributions to partners		—			—			—

		(7,069,881	)		(71,413	)		(7,141,294	)


Partners’ capital (deficit), March 31, 2005		7,388,252			(279,386	)		7,108,866

Net loss		(6,395,088	)		(64,597	)		(6,459,685	)


Partners’ capital (deficit), March 31, 2006	$	993,164		$	(343,983	)	$	649,181

See notes to financial statements

F-22

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CASH FLOWS

Years ended March 31, 2006, 2005 and 2004


	Total
	2006			2005			2004
Cash flows from operating activities
Net loss	$	(17,674,320	)	$	(33,550,858	)	$	(13,247,486	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships		3,518,129			12,401,037			9,459,170
Distributions received from operating limited partnerships		82,150			43,280			169,226
Impairment loss		11,603,236			18,797,540			1,136,378
Amortization		52,384			354,082			68,754
Changes in assets and liabilities
Other assets		85,044			—			—
Accounts payable and accrued expenses		40,266			—			(7,500	)
Accounts payable — affiliates		1,656,375			2,517,620			1,258,295


Net cash provided by (used in) operating activities		(636,736	)		562,701			(1,163,163	)


Cash flows from investing activities
Capital contributions paid to operating limited partnerships		(500	)		(37,498	)		(1,500	)
(Advance)/repayments (to)/from operating limited partnerships		—			96,741			1,081,417
Proceeds from disposition of operating limited partnerships		153,501			2,124,534			168,143


Net cash provided by (used in) investing activities		153,001			2,183,777			1,248,060


Cash flows from financing activities
Distributions to partners		—			(132,334	)		—


		—			(132,334	)		—


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(483,735	)		2,614,144			84,897

Cash and cash equivalents, beginning		3,776,197			1,162,053			1,077,156


Cash and cash equivalents, end	$	3,292,462		$	3,776,197		$	1,162,053

(continued)

F-23

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CASH FLOWS — CONTINUED

Years ended March 31, 2006, 2005 and 2004


	Series 15
	2006			2005			2004
Cash flows from operating activities
Net loss	$	(1,364,396	)	$	(5,118,904	)	$	(1,604,187	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships		301,091			3,263,652			1,044,879
Distributions received from operating limited partnerships		—			253			—
Impairment loss		540,269			1,542,187			—
Amortization		7,652			60,550			10,511
Changes in assets and liabilities
Other assets		(20,635	)		—			—
Accounts payable and accrued expenses		—			—			—
Accounts payable — affiliates		124,513			478,228			(17,105	)


Net cash provided by (used in) operating activities		(411,506	)		225,966			(565,902	)


Cash flows from investing activities
Capital contributions paid to operating limited partnerships		—			(11,998	)		—
(Advance)/repayments (to)/from operating limited partnerships		—			78,284			508,254
Proceeds from disposition of operating limited partnerships		36,295			1,106,404			136,352


Net cash provided by (used in) investing activities		36,295			1,172,690			644,606


Cash flows from financing activities
Distributions to partners		—			(107,567	)		—


		—			(107,567	)		—


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(375,211	)		1,291,089			78,704

Cash and cash equivalents, beginning		1,637,682			346,593			267,889


Cash and cash equivalents, end	$	1,262,471		$	1,637,682		$	346,593

(continued)

F-24

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CASH FLOWS — CONTINUED

Years ended March 31, 2006, 2005 and 2004


	Series 16
	2006			2005			2004
Cash flows from operating activities
Net loss	$	(3,277,786	)	$	(7,557,628	)	$	(3,479,439	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships		302,965			1,548,383			2,471,947
Distributions received from operating limited partnerships		5,850			52,769			46,358
Impairment loss		2,317,370			5,216,286			310,154
Amortization		10,600			126,268			16,851
Changes in assets and liabilities
Other assets		110,860			—			—
Accounts payable and accrued expenses		40,266			—			—
Accounts payable — affiliates		591,979			691,979			591,980


Net cash provided by (used in) operating activities		102,104			78,057			(42,149	)


Cash flows from investing activities
Capital contributions paid to operating limited partnerships		(500	)		(1,500	)		(1,500	)
(Advance)/repayments (to)/from operating limited partnerships		—			—			—
Proceeds from disposition of operating limited partnerships		84,540			—			—


Net cash provided by (used in) investing activities		84,040			(1,500	)		(1,500	)


Cash flows from financing activities
Distributions to partners		—			—			—


		—			—			—


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		186,144			76,557			(43,649	)

Cash and cash equivalents, beginning		386,390			309,833			353,482


Cash and cash equivalents, end	$	572,534		$	386,390		$	309,833

(continued)

F-25

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CASH FLOWS — CONTINUED

Years ended March 31, 2006, 2005 and 2004


	Series 17
	2006			2005			2004
Cash flows from operating activities
Net loss	$	(4,861,581	)	$	(7,393,334	)	$	(2,950,844	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships		696,243			3,737,706			2,291,175
Distributions received from operating limited partnerships		1,170			10,857			5,736
Impairment loss		3,620,144			3,301,027			87,340
Amortization		11,312			87,588			15,550
Changes in assets and liabilities
Other assets		(5,181	)		—			—
Accounts payable and accrued expenses		—			—			—
Accounts payable — affiliates		194,120			493,650			(9,875	)


Net cash provided by (used in) operating activities		(343,773	)		237,494			(560,918	)


Cash flows from investing activities
Capital contributions paid to operating limited partnerships		—			—			—
(Advance)/repayments (to)/from operating limited partnerships		—			75,000			573,163
Proceeds from disposition of operating limited partnerships		32,666			1,018,130			31,791


Net cash provided by (used in) investing activities		32,666			1,093,130			604,954


Cash flows from financing activities
Distributions to partners		—			(24,767	)		—


		—			(24,767	)		—


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(311,107	)		1,305,857			44,036

Cash and cash equivalents, beginning		1,549,157			243,300			199,264


Cash and cash equivalents, end	$	1,238,050		$	1,549,157		$	243,300

(continued)

F-26

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CASH FLOWS — CONTINUED

Years ended March 31, 2006, 2005 and 2004


	Series 18
	2006			2005			2004
Cash flows from operating activities
Net loss	$	(1,710,872	)	$	(6,339,698	)	$	(2,885,843	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships		543,556			1,905,671			1,890,630
Distributions received from (refunded to) operating limited partnerships		2,269			(20,664	)		45,965
Impairment loss		747,347			3,936,899			584,884
Amortization		8,391			65,247			11,414
Changes in assets and liabilities
Other assets		—			—			—
Accounts payable and accrued expenses		—			—			—
Accounts payable — affiliates		409,415			442,415			381,948


Net cash provided by (used in) operating activities		106			(10,130	)		28,998


Cash flows from investing activities
Capital contributions paid to operating limited partnerships		—			—			—
(Advance)/repayments (to)/from operating limited partnerships		—			(56,543	)		—
Proceeds from disposition of operating limited partnerships		—			—			—


Net cash provided by (used in) investing activities		—			(56,543	)		—


Cash flows from financing activities
Distributions to partners		—			—			—


		—			—			—


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		106			(66,673	)		28,998

Cash and cash equivalents, beginning		71,958			138,631			109,633


Cash and cash equivalents, end	$	72,064		$	71,958		$	138,631

(continued)

F-27

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CASH FLOWS — CONTINUED

Years ended March 31, 2006, 2005 and 2004


	Series 19
	2006			2005			2004
Cash flows from operating activities
Net loss	$	(6,459,685	)	$	(7,141,294	)	$	(2,327,173	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships		1,674,274			1,945,625			1,760,539
Distributions received from operating limited partnerships		72,861			65			71,167
Impairment loss		4,378,106			4,801,141			154,000
Amortization		14,429			14,429			14,428
Changes in assets and liabilities
Other assets
Accounts payable and accrued expenses		—			—			(7,500	)
Accounts payable — affiliates		336,348			411,348			311,347


Net cash provided by (used in) operating activities		16,333			31,314			(23,192	)


Cash flows from investing activities
Capital contributions paid to operating limited partnerships		—			(24,000	)		—
(Advance)/repayments (to)/from operating limited partnerships		—			—			—
Proceeds from disposition of operating limited partnerships		—			—			—


Net cash provided by (used in) investing activities		—			(24,000	)		—


Cash flows from financing activities
Distributions to partners		—			—			—


		—			—			—


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		16,333			7,314			(23,192	)

Cash and cash equivalents, beginning		131,010			123,696			146,888


Cash and cash equivalents, end	$	147,343		$	131,010		$	123,696

(continued)

F-28

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS

March 31, 2006, 2005 and 2004


NOTE A —		ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Boston Capital Tax Credit Fund III L.P. (the “partnership” or “fund”) was formed under the laws of the State of Delaware on September 19, 1991, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating limited partnerships which were organized to acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated apartment complexes which qualified for the Low-Income Housing Tax Credit established by the Tax Reform Act of 1986. Accordingly, the apartment complexes are restricted as to rent charges and operating methods. Certain of the apartment complexes also qualified for the Historic Rehabilitation Tax Credit for their rehabilitation of a certified historic structure and are subject to the provisions of the Internal Revenue Code relating to the Rehabilitation Investment Credit. The general partner of the fund is Boston Capital Associates III L.P. and the limited partner is BCTC III Assignor Corp. (the “assignor limited partner”).

Pursuant to the Securities Act of 1933, the fund filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective January 24, 1992, which covered the offering (the “Public Offering”) of the fund’s beneficial assignee certificates (“BACs”) representing assignments of units of the beneficial interest of the limited partnership interest of the assignor limited partner. The fund originally registered 20,000,000 BACs at $10 per BAC for sale to the public in one or more series. An additional 2,000,000 BACs at $10 per BAC were registered for sale to the public in one or more series on September 4, 1994. BACs sold in bulk were offered to investors at a reduced cost per BAC.

The BACs issued and outstanding in each series at March 31, 2006 and 2005 are as follows:


Series 15			3,870,500
Series 16			5,429,402
Series 17			5,000,000
Series 18			3,616,200
Series 19			4,080,000


Total			21,996,102

In accordance with the limited partnership agreements, profits, losses, and cash flow (subject to certain priority allocations and distributions) and tax credits are allocated 99% to the assignees and 1% to the general partner.

F-29

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE A — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships

The fund accounts for its investments in operating limited partnerships using the equity method, whereby the fund adjusts its investment cost for its share of each operating limited partnership’s results of operations and for any distributions received or accrued. However, the fund recognizes the individual operating limited partnership’s losses only to the extent that the fund’s share of losses of the operating limited partnerships does not exceed the carrying amount of its investment and its advances to operating limited partnerships. Unrecognized losses are suspended and offset against future individual operating limited partnership income.

Under Emerging Issues Task Force (EITF) 98-13, after the investment account is reduced to zero, receivables due from the operating limited partnerships are decreased by the fund’s share of losses and, accordingly, a valuation allowance is recorded against the receivables. Accordingly, the partnership recorded a valuation allowance as follows:


	2006		2005
Series 15	$	159,007	$	144,006
Series 16		8,018		8,018
Series 17		74,109		66,212
Series 18		57,536		57,123
Series 19		1,154		—


	$	299,824	$	275,359

A loss in value of an investment in an operating limited partnership other than a temporary decline is recorded as an impairment loss. Impairment is measured by comparing the investment carrying amount to the sum of the total amount of the remaining tax credits allocated to the fund and the estimated residual value of the investment. In addition, deferred acquisition costs related to each investment are evaluated for impairment when an impairment loss has reduced an investment balance to zero. Accordingly, the partnership recorded an impairment loss of $11,603,236, $18,797,540 and $1,136,378 during the years ended March 31, 2006, 2005 and 2004, respectively.

F-30

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE A — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships (Continued)

Capital contributions to operating limited partnerships are adjusted by tax credit adjusters. Tax credit adjusters are defined as adjustments to operating limited partnership capital contributions due to reductions in actual tax credits from those originally projected. The fund records tax credit adjusters as a reduction in investment in operating limited partnerships and capital contributions payable.

The operating limited partnerships maintain their financial statements based on a calendar year and the fund utilizes a March 31 year-end. The fund records income and losses from the operating limited partnerships on a calendar year basis which is not materially different from income and losses generated if the operating limited partnerships utilized a March 31 year-end.

The fund records capital contributions payable to the operating limited partnerships once there is a binding obligation to fund a specified amount. The operating limited partnerships record capital contributions from the fund when received.

The fund records certain acquisition costs as an increase in its investment in operating limited partnerships. Certain operating limited partnerships have not recorded the acquisition costs as a capital contribution from the fund. These differences are shown as reconciling items in note C.

As of March 31, 2004, the partnership adopted FASB Interpretation No. 46 — Revised (“FIN 46R”), “Consolidation of Variable Interest Entities.” FIN 46R provides guidance on when a company should include the assets, liabilities, and activities of a variable interest entity (“VIE”) in its financial statements and when it should disclose information about its relationship with a VIE. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it absorbs the majority of the entity’s expected losses, the majority of the expected residual returns, or both.

F-31

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE A — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships (Continued)

Based on the guidance of FIN 46R, the operating limited partnerships in which the partnership invests in meet the definition of a VIE. However, management does not consolidate the partnership’s interests in these VIEs under FIN 46R, as it is not considered to be the primary beneficiary. The partnership currently records the amount of its investment in these partnerships as an asset in the balance sheets, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in the financial statements.

The partnership’s balance in investment in operating limited partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The partnership’s exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the local general partners and their guarantee against credit recapture.

Deferred Acquisition Costs

Acquisition costs were deferred until March 31, 1995. As of April 1, 1995, the fund reallocated certain acquisition costs, common to all Series, based on a percentage of equity raised to each Series. Acquisition costs are being amortized on the straight-line method starting April 1, 1995, over 27.5 years (330 months).

Accumulated amortization as of March 31, 2006 and 2005 is as follows:


	2006		2005
Series 15	$	162,907	$	155,255
Series 16		288,529		277,929
Series 17		246,753		235,440
Series 18		176,488		168,097
Series 19		157,219		142,791


	$	1,031,896	$	979,512

F-32

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE A — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Deferred Acquisition Costs (Continued)

The amortization of the deferred acquisition costs for each of the ensuing 5 years through March 31, 2011 is estimated to be $52,384 per year.

Selling Commissions and Registration Costs

Selling commissions paid in connection with the public offering are charged against the assignees’ capital upon admission of investors as assignees. Registration costs associated with the public offering are charged against assignees’ capital as incurred.

Income Taxes

No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners and assignees individually.

Cash Equivalents

Cash equivalents include repurchase agreements and money market accounts having original maturities at date of acquisition of three months or less. The carrying value approximates fair value because of the short maturity of these instruments.

During the ordinary course of business, amounts on deposit may exceed the FDIC-insured limit.

F-33

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE A — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fiscal Year

For financial reporting purposes, the fund uses a March 31 year-end, whereas for income tax reporting purposes, the fund uses a calendar year. The operating limited partnerships use a calendar year for both financial and income tax reporting.

Net Income (Loss) per Beneficial Assignee Certificate

Net income (loss) per beneficial assignee partnership unit is calculated based upon the number of units outstanding during the year. The number of units in each series at March 31, 2006, 2005 and 2004 are as follows:


Series 15			3,870,500
Series 16			5,429,402
Series 17			5,000,000
Series 18			3,616,200
Series 19			4,080,000


			21,996,102

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

F-34

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE B — RELATED PARTY TRANSACTIONS

During the years ended March 31, 2006, 2005 and 2004, the fund entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., Boston Capital Services, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership, as follows:

Boston Capital Asset Management Limited Partnership is entitled to an annual fund management fee based on .5% of the aggregate cost of all apartment complexes acquired by the operating limited partnerships, less the amount of certain partnership management and reporting fees paid or payable by the operating limited partnerships. The aggregate cost is comprised of the capital contributions made by each series to the operating limited partnerships and 99% of the permanent financing at the operating limited partnership level. The fee is payable without interest as sufficient funds became available from sales or refinancing proceeds from operating limited partnerships. The annual fund management fee charged to operations, net of reporting fees, during the years ended March 31, 2006, 2005 and 2004 by series, is as follows:


	2006		2005		2004
Series 15	$	427,061	$	186,914	$	462,499
Series 16		550,166		593,725		598,700
Series 17		456,419		199,263		478,680
Series 18		354,643		358,581		323,356
Series 19		309,986		328,210		339,134


	$	2,098,275	$	1,666,693	$	2,202,369

F-35

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE B — RELATED PARTY TRANSACTIONS (Continued)

General and administrative expenses incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership during the years ended March 31, 2006, 2005 and 2004 charged to each series’ operations are as follows:


	2006		2005		2004
Series 15	$	32,089	$	18,309	$	34,271
Series 16		35,683		19,276		31,287
Series 17		31,407		17,809		29,780
Series 18		25,697		14,604		19,803
Series 19		26,096		15,097		18,561


	$	150,972	$	85,095	$	133,702

The Partnership had previously recorded and paid BCAMLP in connection with the disposition of certain Operating Partnerships certain amounts which were incorrectly referred to as sales preparation fees. The payments were actually for reimbursement of overhead and salary expenses incurred by Boston Capital and its Affiliates in connection with the disposition three Operating Partnerships.

During the year ended Mach 31, 2005, the partnership reimbursed Boston Capital Asset Management Limited Partnership for overhead and salary expenses in connection with the disposition of certain operating limited partnerships in Series 15 and Series 17. During the year ended March 31, 2005, the amount incurred for Series 15 was $18,362 and Series 17 was $16,897.

F-36

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE B — RELATED PARTY TRANSACTIONS (Continued)

During the year ended March 31, 2004, the partnership reimbursed Boston Capital Asset Management Limited Partnership for overhead and salary expenses in connection with the sale of certain operating limited partnerships in Series 15 and 17. During the year ended March 31, 2004, the amount incurred for Series 15 and 17 was $3,990 and $3,278, respectively.

Accounts payable — affiliates at March 31, 2006 and 2005 represents fund management fees and an operating limited partnership advance which are payable to Boston Capital Asset Management Limited Partnership. The carrying value of the accounts payable — affiliates approximates fair value.

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

At March 31, 2006 and 2005, the fund has limited partnership interests in operating limited partnerships which own or are constructing operating apartment complexes. The number of operating limited partnerships in which the fund has limited partnership interests at March 31, 2006 and 2005 by series are as follows:


	2006		2005
Series 15		66		66
Series 16		62		64
Series 17		47		47
Series 18		34		34
Series 19		26		26


		235		237

F-37

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

During the year end March 31, 2006 the partnership disposed of two of the operating limited partnerships and received additional proceeds from two operating limited partnerships which were disposed of in the prior year. A summary of the dispositions by Series for March 31, 2006 is as follows:


	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain/(Loss) on
	Transferred		Partnership		Disposition		Disposition
Series 15		—		—	$	36,295	$	36,295
Series 16		—		2		84,540		(23,530	)
Series 17		—		—		32,666		32,666
Series 18		—		—		—		—
Series 19		—		—		—		—


Total		—		2	$	153,501	$	45,431

During the year end March 31, 2005 the partnership disposed of two of the operating limited partnerships. A summary of the dispositions by Series for March 31, 2005 is as follows:


	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain/(Loss) on
	Transferred		Partnership		Disposition		Disposition
Series 15		—		1	$	1,106,404	$	(3,046,179	)
Series 16		—		—		—		—
Series 17		—		1		1,018,130		(2,791,520	)
Series 18		—		—		—		—
Series 19		—		—		—		—


Total		—		2	$	2,124,534	$	(5,837,699	)

F-38

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

During the year end March 31, 2004 the partnership disposed of two of the operating limited partnerships. A summary of the dispositions by Series for March 31, 2004 is as follows:


	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain/(Loss) on
	Transferred		Partnership		Disposition		Disposition
Series 15		—		1	$	136,352	$	28,197
Series 16		—		—		—		—
Series 17		—		1		31,791		3,109
Series 18		—		—		—		—
Series 19		—		—		—		—


Total		—		2	$	168,143	$	31,306

Under the terms of the fund’s investment in each operating limited partnership, the fund is required to make capital contributions to the operating limited partnerships. These contributions are payable in installments over several years upon each operating limited partnership achieving specified levels of construction and/or operations.

The contributions payable to operating limited partnerships at March 31, 2006 and 2005 by series are as follows:


	2006		2005
Series 15	$	4,208	$	4,208
Series 16		71,862		72,362
Series 17		67,895		67,895
Series 18		18,554		18,554
Series 19		—		—


	$	162,519	$	163,019

F-39

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2006 are summarized as follows:


	Total			Series 15			Series 16
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	146,730,517		$	23,053,125		$	36,828,371

Acquisition costs of operating limited partnerships		17,601,230			2,136,641			4,361,999

Syndication costs from operating limited partnerships		(56,632	)		—			—

Cumulative distributions from operating limited partnerships		(1,232,841	)		(16,705	)		(483,322	)

Cumulative impairment loss in investment in operating limited partnerships		(31,386,971	)		(2,082,456	)		(8,826,900	)

Cumulative losses from operating limited partnerships		(124,317,938	)		(22,495,713	)		(29,905,927	)


Investments in operating limited partnerships per balance sheets		7,337,365			594,892			1,974,221

The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2005 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2004 (see note A)		(1,078,516	)		(132,937	)		(113,965	)

The fund has recorded acquisition costs at March 31, 2005 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(2,904,726	)		(399,087	)		(788,200	)

Cumulative losses from operating limited partnerships for the three months ended March 31, 1993 which the operating limited partnerships have not included in their capital as of December 31, 1992 due to different year ends (see note A)		2,195,770			472,214			—

F-40

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)


	Total			Series 15			Series 16
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)		(26,853,742	)		(10,800,283	)		(7,437,124	)

The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		739,465			180,309			151,497

Cumulative impairment loss in investment in operating limited partnerships		31,386,972			2,082,456			8,826,900

Other		781,526			12,314			677,382


Equity per operating limited partnerships’ combined financial statements	$	11,604,114		$	(7,990,122	)	$	3,290,711

F-41

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2006 are summarized as follows:


	Series 17			Series 18			Series 19
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	30,916,846		$	26,416,735		$	29,515,440

Acquisition costs of operating limited partnerships		3,782,255			3,587,531			3,732,804

Syndication costs from operating limited partnerships		—			(56,632	)		—

Cumulative distributions from operating limited partnerships		(127,060	)		(136,944	)		(468,810	)

Cumulative impairment loss in investment in operating limited partnerships		(5,622,625	)		(5,521,743	)		(9,333,247	)

Cumulative losses from operating limited partnerships		(27,034,228	)		(23,562,901	)		(21,319,169	)


Investments in operating limited partnerships per balance sheets		1,915,188			726,046			2,127,018

The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2005 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2004 (see note A)		(710,224	)		(61,783	)		(59,607	)

The fund has recorded acquisition costs at March 31, 2005 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(695,315	)		(387,564	)		(634,560	)

Cumulative losses from operating limited partnerships for the three months ended March 31, 1993 which the operating limited partnerships have not included in their capital as of December 31, 1992 due to different year ends (see note A)		752,440			617,683			353,433

F-42

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)


	Series 17			Series 18			Series 19
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)		(4,378,592	)		(3,133,940	)		(1,103,803	)

The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		59,201			105,595			242,863

Cumulative impairment loss in investment in operating limited partnerships		5,622,625			5,521,743			9,333,248

Other		(10,361	)		73,115			29,076


Equity per operating limited partnerships’ combined financial statements	$	2,554,962		$	3,460,895		$	10,287,668

F-43

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2005 are summarized as follows:


	Total			Series 15			Series 16
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	150,090,856		$	23,053,125		$	40,188,710

Acquisition costs of operating limited partnerships		17,700,013			2,136,641			4,460,782

Syndication costs from operating limited partnerships		(56,632	)		—			—

Cumulative distributions from operating limited partnerships		(1,150,691	)		(16,705	)		(477,473	)

Cumulative impairment loss in investment in operating limited partnerships		(21,252,812	)		(1,542,187	)		(6,509,530	)

Cumulative losses from operating limited partnerships		(124,087,366	)		(22,150,976	)		(32,977,543	)


Investments in operating limited partnerships per balance sheets		21,243,368			1,479,898			4,684,946

The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2005 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2004 (see note A)		(1,078,516	)		(132,937	)		(113,965	)

The fund has recorded acquisition costs at March 31, 2005 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(2,904,726	)		(399,087	)		(788,200	)

Cumulative losses from operating limited partnerships for the three months ended March 31, 1993 which the operating limited partnerships have not included in their capital as of December 31, 1992 due to different year ends (see note A)		2,195,770			472,214			—

F-44

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)


	Total			Series 15			Series 16

Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)		(19,891,318	)		(9,480,451	)		(5,105,889	)

The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		739,465			180,309			151,497

Cumulative impairment loss in investment in operating limited partnerships		21,252,813			1,542,187			6,509,530

Other		750,559			15,337			666,262


Equity per operating limited partnerships’ combined financial statements	$	22,307,415		$	(6,322,530	)	$	6,004,181

F-45

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2005 are summarized as follows:


	Series 17			Series 18			Series 19
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	30,916,843		$	26,416,735		$	29,515,440

Acquisition costs of operating limited partnerships		3,782,255			3,587,531			3,732,804

Syndication costs from operating limited partnerships		—			(56,632	)		—

Cumulative distributions from operating limited partnerships		(125,889	)		(134,675	)		(395,949	)

Cumulative impairment loss in investment in operating limited partnerships		(3,388,367	)		(4,857,587	)		(4,955,141	)

Cumulative losses from operating limited partnerships		(26,293,041	)		(23,019,761	)		(19,646,045	)


Investments in operating limited partnerships per balance sheets		4,891,801			1,935,611			8,251,109

The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2004 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2003 (see note A)		(710,224	)		(61,783	)		(59,607	)

The fund has recorded acquisition costs at March 31, 2004 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(695,315	)		(387,564	)		(634,560	)

Cumulative losses from operating limited partnerships for the three months ended March 31, 1993 which the operating limited partnerships have not included in their capital as of December 31, 1992 due to different year ends (see note A)		752,440			617,683			353,433

F-46

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)


	Series 17			Series 18			Series 19
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)		(2,988,161	)		(1,655,185	)		(661,632	)

The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		59,201			105,595			242,863

Cumulative impairment loss in investment in operating limited partnerships		3,388,367			4,857,587			4,955,142

Other		(36,795	)		75,122			30,633


Equity per operating limited partnerships’ combined financial statements	$	4,661,314		$	5,487,066		$	12,477,381

F-47

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2005 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS


	Total		Series 15			Series 16
ASSETS

Buildings and improvements, net of accumulated depreciation	$	321,081,575	$	53,804,608		$	78,070,091

Land		25,452,842		4,592,814			5,157,885

Other assets		36,965,381		8,937,520			9,941,760


	$	383,499,798	$	67,334,942		$	93,169,736


LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	323,320,829	$	71,154,400		$	75,378,295

Accounts payable and accrued expenses		14,547,477		919,138			6,319,980

Other liabilities		31,307,263		3,225,408			5,275,636


		369,175,569		75,298,946			86,973,911


PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		11,604,111		(7,990,122	)		3,290,711
Other partners		2,720,118		26,118			2,905,114


		14,324,229		(7,964,004	)		6,195,825


	$	383,499,798	$	67,334,942		$	93,169,736

F-48

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2005 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS — CONTINUED


	Series 17			Series 18		Series 19
ASSETS

Buildings and improvements, net of accumulated depreciation	$	77,755,113		$	49,085,784	$	62,365,979

Land		6,497,315			3,363,433		5,841,395

Other assets		8,443,631			5,156,585		4,485,885


	$	92,696,059		$	57,605,802	$	72,693,259


LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	80,772,183		$	42,760,206	$	53,255,745

Accounts payable and accrued expenses		1,847,829			3,479,979		1,980,551

Other liabilities		10,126,354			6,494,667		6,185,198


		92,746,366			52,734,852		61,421,494


PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		2,554,959			3,460,895		10,287,668
Other partners		(2,605,266	)		1,410,055		984,097


		(50,307	)		4,870,950		11,271,765


	$	92,696,059		$	57,605,802	$	72,693,259

F-49

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2004 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS


	Total		Series 15			Series 16
ASSETS

Buildings and improvements, net of accumulated depreciation	$	341,154,819	$	56,873,203		$	86,445,518

Land		25,415,712		4,592,814			5,120,755

Other assets		35,093,395		8,058,023			9,371,379


	$	401,663,926	$	69,524,040		$	100,937,652


LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	328,850,373	$	71,721,468		$	79,017,675

Accounts payable and accrued expenses		14,116,733		881,548			5,904,651

Other liabilities		31,892,230		3,040,758			7,005,604


		374,859,336		75,643,774			91,927,930


PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		22,307,412		(6,322,530	)		6,004,181
Other partners		4,497,178		202,796			3,005,541


		26,804,590		(6,119,734	)		9,009,722


	$	401,663,926	$	69,524,040		$	100,937,652

F-50

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2004 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS — CONTINUED


	Series 17			Series 18		Series 19
ASSETS

Buildings and improvements, net of accumulated depreciation	$	81,210,289		$	51,444,165	$	65,181,644

Land		6,497,315			3,363,433		5,841,395

Other assets		8,402,158			4,565,103		4,696,732


	$	96,109,762		$	59,372,701	$	75,719,771


LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	81,035,563		$	43,053,291	$	54,022,376

Accounts payable and accrued expenses		1,798,661			3,393,230		2,138,643

Other liabilities		10,193,493			6,082,519		5,569,856


		93,027,717			52,529,040		61,730,875


PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		4,661,314			5,487,066		12,477,381
Other partners		(1,579,269	)		1,356,595		1,511,515

		3,082,045			6,843,661		13,988,896

	$	96,109,762		$	59,372,701	$	75,719,771

F-51

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2005 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS


	Total			Series 15			Series 16
Revenue
Rental	$	58,980,939		$	11,077,288		$	13,316,776
Interest and other		3,549,031			1,445,196			509,700


		62,529,970			12,522,484			13,826,476

Expenses
Interest		15,253,869			2,451,939			2,811,681
Depreciation and amortization		17,304,136			3,307,014			4,195,283
Taxes and insurance		8,573,097			1,623,654			2,012,956
Repairs and maintenance		12,262,347			2,530,644			2,848,350
Operating expenses		20,083,851			3,703,850			4,504,372
Other expenses		1,502,119			743,905			178,592


		74,979,419			14,361,006			16,551,234


NET LOSS	$	(12,449,449	)	$	(1,838,522	)	$	(2,724,758	)


Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(11,432,430	)	$	(2,525,834	)	$	(2,632,449	)


Net loss allocated to other partners	$	(1,017,019	)	$	687,312		$	(92,309	)


*		Amounts include $2,181,097, $2,353,014, $1,382,534, $1,483,682, and $441,017 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-52

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2005 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS — CONTINUED


	Series 17			Series 18			Series 19
Revenue
Rental	$	14,952,587		$	8,066,043		$	11,568,245
Interest and other		826,975			255,588			511,572


		15,779,562			8,321,631			12,079,817

Expenses
Interest		4,270,237			2,099,231			3,620,781
Depreciation and amortization		3,984,108			2,660,275			3,157,456
Taxes and insurance		1,953,933			1,160,161			1,822,393
Repairs and maintenance		3,437,391			1,581,326			1,864,636
Operating expenses		5,051,351			2,854,792			3,969,486
Other expenses		167,600			236,103			175,919


		18,864,620			10,591,888			14,610,671


NET LOSS	$	(3,085,058	)	$	(2,270,257	)	$	(2,530,854	)

Net loss allocated to Boston

Capital Tax Credit Fund III L.P.*	$	(2,131,618	)	$	(2,027,238	)	$	(2,115,291	)


Net loss allocated to other partners	$	(953,440	)	$	(243,019	)	$	(415,563	)


*		Amounts include $2,181,097, $2,353,014, $1,382,534, $1,483,682, and $441,017 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-53

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2004 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS


	Total			Series 15			Series 16
Revenue
Rental	$	59,366,277		$	11,009,637		$	14,031,581
Interest and other		3,693,610			939,847			518,148


		63,059,887			11,949,484			14,549,729

Expenses
Interest		15,640,453			2,503,274			3,215,239
Depreciation and amortization		17,707,870			3,372,711			4,521,303
Taxes and insurance		8,763,007			1,648,233			2,105,923
Repairs and maintenance		11,825,326			2,379,955			2,834,667
Operating expenses		19,436,889			3,635,801			4,819,223
Other expenses		1,996,566			867,817			238,349


		75,370,111			14,407,791			17,734,704


NET LOSS	$	(12,310,224	)	$	(2,458,307	)	$	(3,184,975	)


Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(11,364,987	)	$	(2,454,426	)	$	(2,729,109	)


Net loss allocated to other partners	$	(945,237	)	$	(3,881	)	$	(455,866	)


*		Amounts include $2,236,953, $1,180,726, $711,882, $408,340, and $263,746 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-54

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2004 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS — CONTINUED


	Series 17			Series 18			Series 19
Revenue
Rental	$	14,893,243		$	7,820,197		$	11,611,619
Interest and other		1,637,723			234,556			363,336


		16,530,966			8,054,753			11,974,955

Expenses
Interest		4,125,007			2,093,137			3,703,796
Depreciation and amortization		3,999,711			2,653,403			3,160,742
Taxes and insurance		1,949,349			1,139,442			1,920,060
Repairs and maintenance		3,209,192			1,616,588			1,784,924
Operating expenses		4,432,025			2,808,854			3,740,986
Other expenses		215,765			301,539			373,096


		17,931,049			10,612,963			14,683,604


NET LOSS	$	(1,400,083	)	$	(2,558,210	)	$	(2,708,649	)


Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(1,658,068	)	$	(2,314,011	)	$	(2,209,373	)


Net loss allocated to other partners	$	257,985		$	(244,199	)	$	(499,276	)


*		Amounts include $2,236,953, $1,180,726, $711,882, $408,340, and $263,746 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-55

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2003 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS


	Total			Series 15			Series 16
Revenue
Rental	$	63,017,295		$	13,158,882		$	13,669,331
Interest and other		2,617,256			401,255			632,555


		65,634,551			13,560,137			14,301,886

Expenses
Interest		18,379,286			3,441,410			3,385,528
Depreciation and amortization		19,237,704			4,113,421			4,540,081
Taxes and insurance		9,418,586			1,916,762			2,343,147
Repairs and maintenance		12,682,168			2,883,343			2,877,862
Operating expenses		19,745,467			4,052,482			4,584,185
Other expenses		1,697,470			310,998			220,993


		81,160,681			16,718,416			17,951,796


NET LOSS	$	(15,526,130	)	$	(3,158,279	)	$	(3,649,910	)


Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(13,270,258	)	$	(2,714,253	)	$	(3,479,688	)


Net loss allocated to other partners	$	(2,255,872	)	$	(444,026	)	$	(170,222	)


*		Amounts include $1,641,177, $1,007,741, $642,170, $321,132, and $167,562 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-56

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2003 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS — CONTINUED


	Series 17			Series 18			Series 19
Revenue
Rental	$	16,941,934		$	7,762,768		$	11,484,380
Interest and other		947,992			218,596			416,858


		17,889,926			7,981,364			11,901,238

Expenses
Interest		5,600,094			2,170,523			3,781,731
Depreciation and amortization		4,751,784			2,676,743			3,155,675
Taxes and insurance		2,188,913			1,135,847			1,833,917
Repairs and maintenance		3,723,698			1,470,995			1,726,270
Operating expenses		4,832,781			2,604,886			3,671,133
Other expenses		719,448			311,167			134,864


		21,816,718			10,370,161			14,303,590


NET LOSS	$	(3,926,792	)	$	(2,388,797	)	$	(2,402,352	)


Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(2,936,454	)	$	(2,211,762	)	$	(1,928,101	)


Net loss allocated to other partners	$	(990,338	)	$	(177,035	)	$	(474,251	)


*		Amounts include $1,641,177, $1,007,741, $642,170, $321,132, and $167,562 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-57

NOTE D — NOTES RECEIVABLE

Notes receivable at March 31, 2006 and 2005 consist of advance installments of capital contributions to operating limited partnerships. The notes at March 31, 2005 and 2004 are comprised of noninterest bearing and interest bearing notes with rates ranging from 3.66% to prime plus 3%. Prime was 7.75% and 5.75% as of March 31, 2006 and 2005, respectively. These notes are secured by future installments of capital contributions or paid upon demand. The carrying value of the notes receivable at March 31, 2006 and 2005 approximates fair value. The notes at March 31, 2006 and 2005 by series are as follows:


	2006		2005
Series 15	$	—	$	—
Series 16		—		—
Series 17		—		201,109
Series 18		—		—
Series 19		—		—

	$	—	$	201,109

NOTE E — OTHER ASSETS

In addition, other assets include cash advanced to operating limited partnerships at March 31, 2006 and 2005, some of which is to be applied to capital contributions payable when certain criteria have been met. The advances at March 31, 2006 and 2005 by series are as follows:


	2006		2005
Series 15	$	—	$	—
Series 16		—		110,860
Series 17		46,473		1,212,924
Series 18		5,000		49,947
Series 19		—		—

	$	51,473	$	1,373,731

F-58

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN

For income tax purposes, the fund reports using a December 31 year-end. The fund’s net loss for financial reporting and tax return purposes for the year ended March 31, 2006 is reconciled as follows:


	Total			Series 15			Series 16
Net loss for financial reporting purposes	$	(17,674,320	)	$	(1,364,396	)	$	(3,277,786	)

Operating limited partnership rents received in advance		17,397			1,974			2,667

Accrued fund management fees not deducted for tax purposes		1,656,375			124,513			591,979

Other		1,542,570			255,214			24,196

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(7,841,344	)		(2,181,097	)		(2,353,014	)

Impairment loss in investment in operating limited partnership not deductible for tax purposes		31,386,972			2,082,456			8,826,900

Excess of tax depreciation over book depreciation on operating limited partnership assets		(1,273,533	)		(311,854	)		(213,290	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(23,143,198	)		(3,141,932	)		(6,618,269	)


Loss for tax return purposes, year ended December 31, 2005	$	(15,329,081	)	$	(4,535,122	)	$	(3,016,617	)

F-59

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)


	Series 17			Series 18			Series 19
Net loss for financial reporting purposes	$	(4,861,581	)	$	(1,710,872	)	$	(6,459,685	)

Operating limited partnership rents received in advance		12,372			384			—

Accrued fund management fees not deducted for tax purposes		194,120			409,415			336,348

Other		1,210,698			10,975			41,487

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(1,382,534	)		(1,483,682	)		(441,017	)

Impairment loss in investment in operating limited partnership not deductible for tax purposes		5,622,625			5,521,743			9,333,248

Excess of tax depreciation over book depreciation on operating limited partnership assets		(440,608	)		(111,102	)		(196,679	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(3,625,988	)		(4,853,702	)		(4,903,307	)


Loss for tax return purposes, year ended December 31, 2005	$	(3,270,896	)	$	(2,216,841	)	$	(2,289,605	)

F-60

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

For income tax purposes, the fund reports using a December 31 year-end. The fund’s net loss for financial reporting and tax return purposes for the year ended March 31, 2005 is reconciled as follows:


	Total			Series 15			Series 16
Net loss for financial reporting purposes	$	(33,550,858	)	$	(5,118,904	)	$	(7,557,628	)

Operating limited partnership rents received in advance		50,001			1,976			34,290

Accrued fund management fees not deducted for tax purposes		2,457,154			478,228			691,980

Other		(230,720	)		333,002			(472,980	)

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(4,924,889	)		(2,247,379	)		(1,180,726	)

Impairment loss in investment in operating limited partnership not deductible for tax purposes		18,797,540			1,542,187			5,216,286

Excess of tax depreciation over book depreciation on operating limited partnership assets		(1,322,612	)		(291,762	)		(259,873	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		4,622,445			2,393,803			(122,434	)


Loss for tax return purposes, year ended December 31, 2004	$	(14,101,939	)	$	(2,908,849	)	$	(3,651,085	)

F-61

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)


	Series 17			Series 18			Series 19
Net loss for financial reporting purposes	$	(7,393,334	)	$	(6,339,698	)	$	(7,141,294	)

Operating limited partnership rents received in advance		(5,308	)		696			18,347

Accrued fund management fees not deducted for tax purposes		493,650			381,948			411,348

Other		(193,408	)		97,528			5,138

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(767,575	)		(465,463	)		(263,746	)

Impairment loss in investment in operating limited partnership not deductible for tax purposes		3,301,027			3,936,899			4,801,141

Excess of tax depreciation over book depreciation on operating limited partnership assets		(383,483	)		(166,598	)		(220,896	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		2,302,027			124,307			(75,258	)


Loss for tax return purposes, year ended December 31, 2004	$	(2,646,404	)	$	(2,430,381	)	$	(2,465,220	)

F-62

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

For income tax purposes, the fund reports using a December 31 year-end. The fund’s net loss for financial reporting and tax return purposes for the year ended March 31, 2004 is reconciled as follows:


	Total			Series 15			Series 16
Net loss for financial reporting purposes	$	(13,247,486	)	$	(1,604,187	)	$	(3,479,439	)

Operating limited partnership rents received in advance		(7,847	)		(15,176	)		363

Accrued fund management fees not deducted for tax purposes		1,793,157			196,461			591,980

Other		737,828			390,514			(196,503	)

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(3,932,199	)		(1,774,757	)		(1,016,059	)

Impairment loss in investment in operating limited partnership not deductible for tax purposes		1,136,378			—			310,154

Excess of tax depreciation over book depreciation on operating limited partnership assets		(1,457,442	)		(332,993	)		(124,429	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(16,294	)		368,137			97,756


Loss for tax return purposes, year ended December 31, 2003	$	(14,993,905	)	$	(2,772,001	)	$	(3,816,177	)

F-63

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)


	Series 17			Series 18			Series 19
Net loss for financial reporting purposes	$	(2,950,844	)	$	(2,885,843	)	$	(2,327,173	)

Operating limited partnership rents received in advance		(170	)		(7,358	)		14,494

Accrued fund management fees not deducted for tax purposes		311,420			381,948			311,348

Other		722,623			10,732			(189,538	)

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(652,689	)		(321,132	)		(167,562	)

Impairment loss in investment in operating limited partnership not deductible for tax purposes		87,340			584,884			154,000

Excess of tax depreciation over book depreciation on operating limited partnership assets		(547,123	)		(185,692	)		(267,205	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(39,340	)		(228,172	)		(214,675	)


Loss for tax return purposes, year ended December 31, 2003	$	(3,068,783	)	$	(2,650,633	)	$	(2,686,311	)

F-64

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2006, are as follows:


	Total			Series 15			Series 16
Investments in operating limited partnerships — tax return December 31, 2005	$	(4,655,017	)	$	(10,441,363	)	$	(1,006,268	)

Estimated share of loss for the three months ended March 31, 2006		(2,195,770	)		(472,214	)		—

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		26,853,742			10,800,283			7,437,124

Impairment loss in investment in operating limited partnerships		(31,386,972	)		(2,082,456	)		(8,826,900	)

Historic tax credits		5,325,806			—			1,844,836

Other		13,395,576			2,790,642			2,525,429


Investments in operating limited partnerships — as reported	$	7,337,365		$	594,892		$	1,974,221

F-65

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2006, are as follows:


	Series 17			Series 18			Series 19
Investments in operating limited partnerships — tax return December 31, 2005	$	115,725		$	(148,187	)	$	6,825,076

Estimated share of loss for the three months ended March 31, 2006		(752,440	)		(617,683	)		(353,433	)

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		4,378,592			3,133,940			1,103,803

Impairment loss in investment in operating limited partnerships		(5,622,625	)		(5,521,743	)		(9,333,248	)

Historic tax credits		1,100,310			2,062,333			318,327

Other		2,695,626			1,817,386			3,566,493


Investments in operating limited partnerships — as reported	$	1,915,188		$	726,046		$	2,127,018

F-66

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2005, are as follows:


	Total			Series 15			Series 16
Investments in operating limited partnerships — tax return December 31, 2004	$	12,307,036		$	(4,926,511	)	$	1,872,521

Estimated share of loss for the three months ended March 31, 2005		(2,195,770	)		(472,214	)		—

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		19,891,318			9,480,451			5,105,889

Impairment loss in investment in operating limited partnerships		(21,252,813	)		(1,542,187	)		(6,509,530	)

Historic tax credits		3,589,533			1,852,569			—

Other		8,904,061			(2,912,210	)		4,216,066


Investments in operating limited partnerships — as reported	$	21,243,365		$	1,479,898		$	4,684,946

F-67

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2005, are as follows:


	Series 17			Series 18			Series 19
Investments in operating limited partnerships — tax return December 31, 2004	$	4,233,050		$	1,959,563		$	9,168,413

Estimated share of loss for the three months ended March 31, 2005		(752,440	)		(617,683	)		(353,433	)

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		2,988,161			1,655,185			661,632

Impairment loss in investment in operating limited partnerships		(3,388,367	)		(4,857,587	)		(4,955,142	)

Historic tax credits		1,100,310			318,327			318,327

Other		711,087			3,477,806			3,411,312


Investments in operating limited partnerships — as reported	$	4,891,801		$	1,935,611		$	8,251,109

F-68

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE G — CASH EQUIVALENTS

On March 31, 2006 and 2005, Boston Capital Tax Credit Fund III L.P. purchased $3,200,000 and $3,600,000 of corporate debt securities under agreements to resell on April 1, 2006 and April 1, 2005, respectively. Interest is earned at rates ranging from .40% to .95% per annum.

NOTE H — CONTINGENCY

Mt. Vernon Associates, L.P., an operating limited partnership, has been notified by the IRS of certain instances of noncompliance relating to IRC Section 42 requirements. The Operating General Partner has corrected the files to the best of their ability; however, the Investment General Partner is in the process of assessing the situation. On January 9, 2003, the state agency conducted an audit and found one compliance issue, which has been corrected. The Investment General Partner continues to monitor this situation closely; however, it is not possible to determine the final result at this time. Accordingly, no adjustment has been made in the accompanying financial statements.

F-69

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2006, 2005 and 2004

NOTE I — QUARTERLY FINANCIAL INFORMATION

The following is a summary of the results of operations for each of the four quarters for the years indicated:


	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter
2006

Total revenue	$	8,096		$	27,531		$	4,877		$	9,908

Loss from operations		(569,200	)		(751,825	)		(641,041	)		(12,194,125	)

Share of losses from Operating Limited Partnerships		(1,002,688	)		(960,024	)		(1,095,464	)		(459,953	)

Net loss		(1,571,888	)		(1,711,849	)		(1,736,505	)		(12,654,078	)

Net loss per BAC		(0.07	)		(0.08	)		(0.08	)		(0.57	)

2005

Total revenue	$	3,196		$	10,313		$	2,201		$	9,230

Loss from operations		(548,272	)		(761,696	)		(646,566	)		(19,193,287	)

Share of losses from Operating Limited Partnerships		(1,854,448	)		(1,598,316	)		(1,548,450	)		(7,399,823	)

Net loss		(2,402,720	)		(2,360,012	)		(2,195,016	)		(26,593,110	)

Net loss per BAC		(0.11	)		(0.11	)		(0.10	)		(1.20	)

2004

Total revenue	$	4,521		$	9,464		$	14,611		$	1,507

Loss from operations		(556,951	)		(778,596	)		(694,435	)		(1,758,334	)

Share of losses from Operating Limited Partnerships		(2,331,000	)		(2,128,398	)		(2,421,660	)		(2,578,112	)

Net loss		(2,887,951	)		(2,906,994	)		(3,116,095	)		(4,336,446	)

Net loss per BAC		(0.13	)		(0.13	)		(0.14	)		(0.20	)

F-70

Boston Capital Tax Credit Fund III LP — Series 15

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to		Gross Amount at Which Carried
			Initial Cost to Company				Acquisition		at Close of Period												Life on Which
					Buildings and						Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements		Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

APRIL GARDENS		1,433,832		50,000		1,773,331		25,673		50,000		1,799,004		1,849,004		936,642		5/93		9/92	5-27.5 yrs
ARKANSAS CITY		798,655		15,870		1,016,757		0		15,870		1,016,757		1,032,627		470,613		12/94		9/94	5-25 yrs
AUTUMNWOOD		1,274,738		50,000		1,669,609		20,780		50,000		1,690,389		1,740,389		824,354		1/93		8/92	5-27.5 yrs
BARTON VILLAGE		497,577		47,898		683,991		4,787		47,898		688,778		736,676		331,816		3/93		10/92	5-27.5 yrs
BECKWOOD MANOR EIGHT		1,192,246		60,000		1,498,746		13,990		58,000		1,512,736		1,570,736		645,550		8/95		8/94	5-27.5 yrs
BERGEN MANOR		984,011		42,000		1,256,858		57,312		42,000		1,314,170		1,356,170		681,255		7/92		7/92	7-27.5 yrs
BRIDLEWOOD		767,806		42,000		211,635		809,310		42,000		1,020,945		1,062,945		313,968		1/95		1/94	5-27.5 yrs
BRUNSWICK		787,464		69,000		953,553		11,477		69,214		965,030		1,034,244		488,955		9/92		4/92	7-27.5 yrs
BUENA VISTA APTS		1,418,944		75,000		1,767,511		18,983		75,000		1,786,494		1,861,494		937,708		1/92		3/92	7-27.5 yrs
CALEXICO SR		1,879,217		213,000		2,047,255		0		213,000		2,047,255		2,260,255		576,604		9/92		9/92	7-27.5 yrs
CHESTNUT HILL		721,049		40,000		904,814		17,675		40,000		922,489		962,489		335,756		9/92		9/92	7-27.5 yrs
CORALVILLE HOUSING		2,280,303		258,000		4,683,541		160,999		258,000		4,844,540		5,102,540		2,529,168		10/92		3/92	7-27.5 yrs
CURWENSVILLE		1,181,347		31,338		1,435,553		246,596		31,338		1,682,149		1,713,487		611,137		7/93		9/92	5-27.5 yrs
DEERFIELD		1,201,190		65,400		1,495,473		0		65,400		1,495,473		1,560,873		766,297		6/92		4/92	7-27.5 yrs
EAST MACHIAS		1,013,820		77,963		1,478,171		51,827		77,963		1,529,998		1,607,961		535,173		1/93		9/92	10-40 yrs
EAST PARK		492,714		2,000		980,413		45,737		2,000		1,026,150		1,028,150		469,509		1/94		6/94	5-27.5 yrs
EDGEWOOD		766,205		36,000		967,796		0		36,000		967,796		1,003,796		477,363		8/92		6/92	7-27.5 yrs

F-71

Boston Capital Tax Credit Fund III LP — Series 15

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to			Gross Amount at Which Carried
			Initial Cost to Company				Acquisition			at Close of Period												Life on Which
					Buildings and							Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements			Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

FAR VIEW		897,686		100,000		1,066,418		31,563			100,000		1,097,981		1,197,981		381,994		11/92		6/92	10-40 yrs
GRAHAM HOUSING		1,207,847		85,006		2,451,794		12,645			85,006		2,464,439		2,549,445		792,666		6/95		10/94	5-27.5 yrs
GRANTSVILLE		1,449,108		85,099		1,795,971		28,318			85,599		1,824,289		1,909,888		625,182		2/93		5/92	5-27.5 yrs
GREENTREE APTS		665,037		15,000		1,143,223		(9,253	)		15,000		1,133,970		1,148,970		788,817		10/75		4/94	5-27.5 yrs
GREENWOOD VIL		656,125		20,123		893,915		8,589			20,123		902,504		922,627		433,487		5/93		8/92	5-27.5 yrs
HARRISONVILLE II		595,524		15,000		744,677		47,918			15,000		792,595		807,595		435,597		11/91		3/92	7-27.5 yrs
HEALDTON		679,109		15,000		868,469		0			15,000		868,469		883,469		266,017		12/94		8/94	5-27.5 yrs
HEARTHSIDE		1,840,168		95,000		2,967,134		(25,779	)		95,000		2,941,355		3,036,355		1,276,559		11/92		4/92	7-27.5 yrs
HERONS LANDING		1,174,340		176,121		1,410,573		47,370			176,121		1,457,943		1,634,064		748,019		10/92		10/92	7-27.5 yrs
HIGGINSVILLE ESTATES		613,741		40,000		738,056		18,581			40,000		756,637		796,637		430,609		3/91		3/92	7-27.5 yrs
INV GROUP OF PAYSON		1,453,484		211,500		1,767,942		0			211,500		1,767,942		1,979,442		504,975		8/92		8/92	7-27.5 yrs
KEARNEY		619,228		30,000		763,159		24,574			30,000		787,733		817,733		435,583		1/92		5/92	7-27.5 yrs
LAKEVIEW		867,463		30,000		1,077,130		(900	)		30,000		1,076,230		1,106,230		548,421		7/92		4/92	7-27.5 yrs
LAURELWOOD		1,043,568		58,500		1,268,491		751			58,500		1,269,242		1,327,742		651,853		2/92		3/92	7-27.5 yrs
LEBANON II		894,150		40,000		1,090,397		31,618			40,189		1,122,015		1,162,204		547,640		2/93		8/92	5-27.5 yrs
LEBANON III		617,210		26,750		766,992		99,230			26,750		866,222		892,972		441,148		2/92		3/92	7-27.5 yrs
LILAC		701,229		36,000		897,897		0			36,000		897,897		933,897		451,989		7/92		6/92	7-27.5 yrs

F-72

Boston Capital Tax Credit Fund III LP — Series 15

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to		Gross Amount at Which Carried
			Initial Cost to Company				Acquisition		at Close of Period												Life on Which
					Buildings and						Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements		Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

LIVINGSTON PLAZA		653,008		32,500		868,525		0		32,500		868,525		901,025		408,467		11/93		12/92	5-27.5 yrs
MADISON PARTNERS		1,170,598		47,340		1,452,910		44,312		47,340		1,497,222		1,544,562		663,384		12/94		3/95	5-27.5 yrs
MANNING LANE		1,435,204		73,600		1,771,816		6,478		73,600		1,778,294		1,851,894		869,220		3/93		8/92	5-27.5 yrs
MARSHALL LANE		539,657		20,000		672,691		1,718		20,000		674,409		694,409		332,520		12/92		8/92	5-27.5 yrs
MARYVILLE		701,588		57,000		834,823		38,852		57,000		873,675		930,675		475,866		3/92		5/92	7-27.5 yrs
MONARK VILLAGE		310,201		68,900		570,916		7,468		68,900		578,384		647,284		237,679		3/94		6/94	5-27.5 yrs
N. PRAIRIE		856,413		5,000		1,121,143		33,513		5,000		1,154,656		1,159,656		606,619		5/93		9/92	5-27.5 yrs
OAKGROVE		393,816		5,000		460,291		18,881		5,000		479,172		484,172		269,947		11/91		4/92	7-27.5 yrs
OAKWOOD		1,082,915		42,000		1,341,412		17,729		42,000		1,359,141		1,401,141		706,865		5/92		5/92	7-27.5 yrs
OSAGE		838,412		110,000		2,309,861		84,028		110,000		2,393,889		2,503,889		1,248,503		6/92		4/92	7-27.5 yrs
OSCEOLA		604,425		54,600		797,763		182,224		27,300		979,987		1,007,287		502,483		5/92		5/92	7-27.5 yrs
PDC FIFTY FIVE		1,254,852		50,170		1,576,823		14,276		50,170		1,591,099		1,641,269		738,305		9/93		10/92	5-27.5 yrs
RAINIER		3,544,759		521,000		5,852,852		122,482		521,000		5,975,334		6,496,334		2,203,123		1/93		4/92	5-27.5 yrs
RIDGEVIEW		855,619		42,800		1,027,499		8,637		42,800		1,036,136		1,078,936		538,464		1/92		3/92	7-27.5 yrs
RIO MEMBRES II		755,467		48,938		930,376		30,078		48,938		960,454		1,009,392		354,863		4/92		4/92	7-27.5 yrs
ROLLING BROOK		805,930		35,000		1,006,667		48,183		35,000		1,054,850		1,089,850		555,319		11/92		6/92	7-27.5 yrs

F-73

Boston Capital Tax Credit Fund III LP — Series 15

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to			Gross Amount at Which Carried
			Initial Cost to Company				Acquisition			at Close of Period												Life on Which
					Buildings and							Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements			Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

SCHOOL STREET		637,647		127,852		1,353,622		139,110			38,509		1,492,732		1,531,241		857,535		5/92		4/92	5-27.5 yrs
SHENANDOAH		1,435,693		67,500		1,754,599		23,199			67,500		1,777,798		1,845,298		841,420		2/93		8/92	5-27.5 yrs
SHOWBOAT MANOR		776,128		31,200		968,253		18,535			31,200		986,788		1,017,988		523,042		2/92		7/92	5-27.5 yrs
SIOUX FALLS		1,100,657		146,694		2,656,753		85,748			146,694		2,742,501		2,889,195		1,429,178		9/92		5/92	7-27.5 yrs
SUNSET SQUARE		721,359		50,000		896,507		11,950			50,000		908,457		958,457		336,136		8/92		9/92	7-27.5 yrs
TAYLOR MILLS		750,438		24,000		936,166		0			24,000		936,166		960,166		478,758		5/92		4/92	7-27.5 yrs
TIMMONS VILLAGE		608,182		15,000		754,172		7,019			38,500		761,191		799,691		384,695		7/92		5/92	7-27.5 yrs
UNIVERSITY MEADOWS		2,210,149		62,985		3,579,473		49,855			62,985		3,629,328		3,692,313		1,921,082		12/92		6/92	5-28 yrs
VALATIE		1,269,811		30,000		1,712,263		88,382			30,000		1,800,645		1,830,645		911,454		4/93		6/92	7-27.5 yrs
VIRGEN DEL POZO		3,268,862		120,000		4,274,133		207,046			120,000		4,481,179		4,601,179		2,026,647		7/93		8/92	5-27.5 yrs
VILLA DEL MAR		1,433,997		50,000		1,792,888		70,354			50,000		1,863,242		1,913,242		999,043		8/92		8/92	7-27.5 yrs
WACHULA		1,444,283		66,720		1,770,669		31,452			66,720		1,802,121		1,868,841		887,949		10/92		9/92	5-27.5 yrs
WEEDPATCH		1,922,505		272,000		2,246,927		20,248			272,000		2,267,175		2,539,175		580,157		9/94		1/94	5-50 yrs
WESTERNPORT		1,450,976		18,645		1,833,384		63,007			18,645		1,896,391		1,915,036		876,676		2/93		7/92	5-27.5 yrs
WHITEWATER VILL		513,065		18,542		637,048		5,396			18,542		642,444		660,986		320,275		11/92		8/92	7-27.5 yrs
WOOD PARK POINTE		1,141,649		117,500		1,329,664		(1,318,376	)		117,500		11,288		128,788		9,583		5/92		6/92	5-27.5 yrs

		71,154,400		4,687,054		97,630,134		1,962,155			4,592,814		99,592,289		104,185,103		45,787,681

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2005

There were no carrying costs as of December 31, 2005. The column has been omitted for presentation purposes.

F-74

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 15

Reconciliation of Land, Building & Improvements current year changes


Balance at beginning of period — 4/1/92				$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		64,786,120
Other		0

				$	64,786,120
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/93				$	64,786,120
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		52,271,170
Other		0

				$	52,271,170
Deductions during period:
Cost of real estate sold	$	0
Other		(69,144	)

					(69,144	)

Balance at close of period — 3/31/94				$	116,988,146
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		10,630,188
Improvements, etc		182,886
Other		0

				$	10,813,074
Deductions during period:
Cost of real estate sold	$	0
Other		(927,768	)

					(927,768	)

Balance at close of period — 3/31/95				$	126,873,452

F-75

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 15 (Continued)


Balance at close of period — 3/31/95			$	126,873,452
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		7,477,482
Improvements, etc		998,864
Other		0

			$	8,476,346
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/96			$	135,349,798
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		102,413
Improvements, etc		0
Other		0

			$	102,413
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/97			$	135,452,211
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		136,931
Other		0

			$	136,931
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/98			$	135,589,142

F-76

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 15 (Continued)


Balance at close of period — 3/31/98				$	135,589,142
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		229,180
Other		0

				$	229,180
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/99				$	135,818,322
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		203,110
Other		0

				$	203,110
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/00				$	136,021,432
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		215,095
Other		0

				$	215,095
Deductions during period:
Cost of real estate sold	$	0
Other		(500,929	)

					(500,929	)

Balance at close of period — 3/31/01				$	135,735,598

F-77

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 15 (Continued)


Balance at close of period — 3/31/01				$	135,735,598
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		422,538
Other		0

				$	422,538
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/02				$	136,198,136
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		369,190
Other		0

				$	369,190
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/03				$	136,527,326
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		387,486
Other		0

				$	387,486
Deductions during period:
Cost of real estate sold	$	(5,097,684	)
Other		0

					(5,097,684	)

Balance at close of period — 3/31/04				$	131,817,128

F-78

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 15 (Continued)


Balance at close of period — 3/31/04				$	131,817,128
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		197,413
Other		(1,322,384	)

				$	(1,124,971	)
Deductions during period:
Cost of real estate sold	$	(26,715,597	)
Other		0

					(26,715,597	)

Balance at close of period — 3/31/05				$	103,976,560
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		208,543
Other		0

				$	208,543
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/06				$	104,185,103

F-79

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 15 (Continued)

Reconciliation of Accumulated Depreciation current year changes


Balance at beginning of period — 4/1/92				$	0
Current year expense	$	1,151,027

Balance at close of period — 3/31/93				$	1,151,027
Current year expense	$	4,194,293

Balance at close of period — 3/31/94				$	5,345,320
Current year expense	$	4,646,907

Balance at close of period — 3/31/95				$	9,992,227
Current year expense	$	5,445,282

Balance at close of period — 3/31/96				$	15,437,509
Current year expense	$	4,587,940

Balance at close of period — 3/31/97				$	20,025,449
Current year expense	$	4,427,546

Balance at close of period — 3/31/98				$	24,452,995
Current year expense	$	4,453,997

Balance at close of period — 3/31/99				$	28,906,992
Current year expense	$	4,348,463

Balance at close of period — 3/31/00				$	33,255,455
Current year expense	$	3,625,904

Balance at close of period — 3/31/01				$	36,881,359
Current year expense	$	4,117,724

Balance at close of period — 3/31/02				$	40,999,083
Current year expense	$	4,130,487

Balance at close of period — 3/31/03				$	45,129,570
Current year expense	$	3,943,806
Reduction for real-estate sold		(2,183,384	)

Balance at close of period — 3/31/04				$	46,889,992
Current year expense	$	2,721,013
Reduction for real-estate sold		(7,100,462	)

Balance at close of period — 3/31/05				$	42,510,543
Current year expense	$	3,277,138

Balance at close of period — 3/31/06				$	45,787,681

F-80

Boston Capital Tax Credit Fund III LP — Series 16

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to			Gross Amount at Which Carried
			Initial Cost to Company				Acquisition			at Close of Period												Life on Which
					Buildings and							Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements			Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

1413 LEAVENWORTH		1,845,526		8,000		2,927,089		634,060			8,000		3,561,149		3,569,149		1,677,330		3/93		12/92	5-27.5 yrs
ANSON		1,250,875		40,202		1,683,348		24,022			40,202		1,707,370		1,747,572		594,402		9/93		12/92	10-40 yrs
AZTEC		991,730		115,000		1,299,311		29,957			115,000		1,329,268		1,444,268		655,088		5/93		5/93	5-27.5 yrs
BENTONIA ELDERLY		819,903		21,000		678,677		399,796			21,000		1,078,473		1,099,473		354,084		2/94		7/93	5-27.5 yrs
BERNICE VILLA		888,894		37,000		1,204,665		48,469			37,000		1,253,134		1,290,134		396,916		10/93		5/93	5-40 yrs
BLAIRSVILLE RENTAL I		741,008		58,377		866,980		41,529			35,000		908,509		943,509		372,815		9/94		12/92	5-27.5 yrs
BLAIRSVILLE RENTAL		725,283		84,359		804,895		61,404			49,500		866,299		915,799		357,987		7/94		12/92	5-27.5 yrs
BLOWING ROCK		499,021		47,500		663,473		17,107			47,500		680,580		728,080		271,365		11/94		12/93	5-27.5 yrs
BRANSON CHRISTIAN I		1,331,527		163,350		2,990,564		33,584			163,350		3,024,148		3,187,498		1,351,753		6/94		3/94	5-27.5 yrs
BRANSON CHRISTIAN II		1,101,829		0		2,497,066		66,846			0		2,563,912		2,563,912		1,126,255		8/94		7/94	5-27.5 yrs
BUTLER RENTAL		728,141		0		937,495		18,148			0		955,643		955,643		430,828		9/93		12/92	7-27.5 yrs
CANTERFIELD		748,737		48,000		934,169		(1,058	)		48,000		933,111		981,111		456,128		1/93		11/92	5-27.5 yrs
CAPE ANN		318,601		18,000		1,833,366		84,955			18,000		1,918,321		1,936,321		836,152		12/93		1/93	7-31.5 yrs
CASS PARTNERS		565,161		45,250		2,026,740		0			45,250		2,026,740		2,071,990		636,568		12/93		12/93	5-27.5 yrs
CEDAR TRACE		490,529		18,000		639,500		5,277			18,000		644,777		662,777		335,000		7/93		10/92	5-27.5 yrs
CONCORD ASSOC.		1,084,594		61,532		1,223,133		148,586			129,441		1,371,719		1,501,160		742,038		2/93		2/93	5-27.5 yrs
CLYMER PARK ASSOC		1,414,985		35,800		1,831,813		105,492			35,800		1,937,305		1,973,105		589,908		11/94		12/92	5-27.5 yrs
CUMBERLAND WOOD		1,414,225		114,449		1,780,622		106,400			113,625		1,887,022		2,000,647		559,645		10/94		12/93	6-40 yrs
DAVENPORT HOUSING		3,494,949		223,889		6,598,309		164,469			223,889		6,762,778		6,986,667		3,127,233		2/94		10/93	7-27.5 yrs
DEER RUN		612,803		30,000		1,536,783		0			30,000		1,536,783		1,566,783		727,345		3/93		8/93	5-27.5 yrs
EASTMAN ELDERLY		1,140,518		80,000		1,428,172		26,283			36,900		1,454,455		1,491,355		627,157		10/93		12/92	7-27.5 yrs
FAIRMEADOW APTS		858,999		53,296		1,184,327		44,098			53,296		1,228,425		1,281,721		383,042		7/93		1/93	5-27.5 yrs
FALCON RIDGE		1,012,489		25,000		1,332,798		50,323			25,000		1,383,121		1,408,121		411,212		1/95		4/94	5-27.5 yrs

F-81

Boston Capital Tax Credit Fund III LP — Series 16

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to			Gross Amount at Which Carried
			Initial Cost to Company				Acquisition			at Close of Period												Life on Which
					Buildings and							Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements			Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

GIBSON		867,220		30,290		1,138,786		(955	)		30,290		1,137,831		1,168,121		396,677		6/93		12/92	5-27.5 yrs
GREENFIELD		516,093		25,000		649,793		9,288			25,000		659,081		684,081		301,932		5/93		1/93	5-27.5 yrs
GREENWOOD		1,425,697		62,076		1,480,776		392,428			190,066		1,873,204		2,063,270		986,456		10/93		11/93	5-27.5 yrs
HARMONY HOUSE		1,420,984		57,000		1,764,438		23,280			57,000		1,787,718		1,844,718		654,476		7/93		11/92	5-27.5 yrs
HAYNES HOUSE		2,594,034		685,381		5,956,903		3,044,303			674,499		9,001,206		9,675,705		2,377,785		9/95		8/94	12-40 yrs
HOLLY TREE		863,050		58,900		1,069,733		4,853			58,900		1,074,586		1,133,486		525,360		2/93		11/92	5-27.5 yrs
IDABEL PROP.		1,338,057		50,000		1,791,971		0			50,000		1,791,971		1,841,971		907,272		12/93		4/93	5-25 yrs
ISOLA SQUARE		944,732		22,300		250,691		1,007,726			22,300		1,258,417		1,280,717		372,922		4/94		11/93	7-40 yrs
JOINER ELDERLY		767,397		47,719		1,026,013		51,772			47,719		1,077,785		1,125,504		525,348		6/93		1/93	5-40 yrs
LAWRENCEVILLE MANOR		1,380,461		61,370		1,660,796		64,641			61,370		1,725,437		1,786,807		776,319		7/94		2/94	5-27.5 yrs
LAWTELL MANOR		878,390		45,000		1,201,948		36,549			45,000		1,238,497		1,283,497		396,278		8/93		4/93	7-40 yrs
LOGAN LANE		1,266,595		54,000		1,602,465		(103	)		54,000		1,602,362		1,656,362		774,568		3/93		9/92	5-27.5 yrs
MEADOWS OF SOUTHGATE		2,125,556		252,000		4,575,879		13,745			252,000		4,589,624		4,841,624		1,323,121		5/94		7/93	12-40 yrs
MENDOTA VILLAGE		1,921,155		136,140		2,421,001		22,450			136,140		2,443,451		2,579,591		641,674		5/93		12/92	5-50 yrs
MIDCITY		2,618,243		15,058		6,611,666		18,729			15,058		6,630,395		6,645,453		2,757,836		6/94		9/93	5-27.5 yrs
NEWPORT HOUSING		1,176,390		160,000		1,405,411		(2,884	)		160,000		1,402,527		1,562,527		482,020		10/93		2/93	5-27.5 yrs
NEWPORT MANOR		923,737		31,908		1,175,109		94,333			31,908		1,269,442		1,301,350		429,619		12/93		9/93	5-40 yrs
PALATINE LP		1,361,848		37,400		1,785,282		74,646			37,400		1,859,928		1,897,328		858,999		5/94		5/94	5-27.5 yrs
RIVIERA APTS		1,632,238		100,000		2,979,700		625,261			132,400		3,604,961		3,737,361		1,581,330		12/93		12/92	5-27.5 yrs
SABLE CHASE		4,373,940		502,774		12,248,475		130,357			502,774		12,378,832		12,881,606		5,408,379		12/94		12/93	7-27.5 yrs
ST CROIX COMMONS		931,427		44,681		2,607,046		(655,017	)		44,681		1,952,029		1,996,710		887,900		12/94		10/94	5-27.5 yrs

F-82

Boston Capital Tax Credit Fund III LP — Series 16

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to		Gross Amount at Which Carried
			Initial Cost to Company				Acquisition		at Close of Period												Life on Which
					Buildings and						Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements		Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

ST JOSEPH SQ		926,298		37,500		1,167,702		44,281		37,500		1,211,983		1,249,483		380,856		9/93		5/93	5-40 yrs
SIMMESPORT		894,527		60,000		1,171,005		55,440		60,000		1,226,445		1,286,445		403,230		6/93		4/93	7-40 yrs
STONY GROUND		1,387,240		127,380		1,794,961		28,248		129,005		1,823,209		1,952,214		795,638		6/93		12/92	5-27.5 yrs
SUMMERSVILLE		604,252		20,000		774,259		18,078		20,000		792,337		812,337		406,747		6/93		5/93	5-27.5 yrs
TALBOT VILLAGE		685,054		22,300		833,494		6,962		22,300		840,456		862,756		406,989		4/93		8/92	5-27.5 yrs
TCHULA ELDERLY		805,870		20,000		1,071,899		35,017		20,000		1,106,916		1,126,916		361,421		12/93		7/93	5-27.5 yrs
TUOLUMNE CITY		1,550,025		190,000		1,912,157		0		190,000		1,912,157		2,102,157		492,968		8/93		12/92	5-50 yrs
TURTLE CREEK		827,638		23,141		1,113,511		45,256		23,141		1,158,767		1,181,908		404,609		10/93		5/93	7-40 yrs
TWIN OAKS ASSOC		1,417,928		45,000		1,776,674		7,868		45,000		1,784,542		1,829,542		643,862		9/93		12/92	5-27.5 yrs
VICTORIA POINTE		1,408,539		153,865		1,437,570		366,033		128,900		1,803,603		1,932,503		748,136		1/95		10/94	5-27.5 yrs
VISTA LINDA APARTMENTS		2,456,355		143,253		2,961,671		144,581		143,253		3,106,252		3,249,505		1,292,175		12/93		1/93	5-27.5 yrs
WAKEFIELD HOUSING		1,231,015		88,564		1,480,003		45,865		88,564		1,525,868		1,614,432		538,327		2/93		9/92	10-40 yrs
WEST END MANOR		962,622		52,300		1,188,913		10,924		52,300		1,199,837		1,252,137		571,079		5/93		5/93	5-27.5 yrs
WESTCHESTER OAK GROVE		978,273		38,010		2,281,529		83,917		62,164		2,365,446		2,427,610		1,222,425		4/93		12/92	5-27.5 yrs
WESTCHESTER ST JOE		1,167,753		100,000		3,211,620		98,948		100,000		3,310,568		3,410,568		1,611,931		6/93		7/93	5-27.5 yrs
WESTVILLE PROPERTIES		681,490		25,000		912,139		0		25,000		912,139		937,139		473,716		7/93		2/93	5-25 yrs
WILCOX INVESTMENT GROUP		1,075,903		58,500		1,376,329		13,345		58,500		1,389,674		1,448,174		365,088		6/93		1/93	5-50 yrs
WOODLANDS APTS		909,942		30,000		668,555		587,935		30,000		1,256,490		1,286,490		523,205		2/95		9/94	5-27.5 yrs

		75,378,295		5,041,814		121,441,168		8,657,847		5,157,885		130,099,015		135,256,900		52,028,924

Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 2005.

There we no carrying costs as of December 31, 2005. The Column has been omitted for presentation purposes.

F-83

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 16

Reconciliation of Land, Building & Improvements current year changes


Balance at beginning of period — 4/1/92			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		4,191,631
Improvements, etc		0
Other		0

			$	4,191,631
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/93			$	4,191,631
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		32,686,042
Improvements, etc		43,162,006
Other		0

			$	75,848,048
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/94			$	80,039,679
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		15,495,343
Improvements, etc		41,448,097
Other		0

			$	56,943,440
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/95			$	136,983,119

F-84

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 16 (Continued)


Balance at close of period — 3/31/95				$	136,983,119
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		106,204
Improvements, etc		5,007,023
Other		0

				$	5,113,227
Deductions during period:
Cost of real estate sold	$	0
Other		(675,394	)

					(675,394	)

Balance at close of period — 3/31/96				$	141,420,952
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		97,847
Other		0

				$	97,847
Deductions during period:
Cost of real estate sold	$	0
Other		(1,512,675	)

					(1,512,675	)

Balance at close of period — 3/31/97				$	140,006,124
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		163,080
Other		0

				$	163,080
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/98				$	140,169,204

F-85

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 16 (Continued)


Balance at close of period — 3/31/98			$	140,169,204
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		240,077
Other		0

			$	240,077
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/99			$	140,409,281
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		618,565
Other		0

			$	618,565
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/00			$	141,027,846
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		281,498
Other		0

			$	281,498
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/01			$	141,309,344

F-86

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 16 (Continued)


Balance at close of period — 3/31/01			$	141,309,344
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		291,709
Other		0

			$	291,709
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/02			$	141,601,053
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		472,351
Other		0

			$	472,351
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/03			$	142,073,404
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		561,633
Other		0

			$	561,633
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/04			$	142,635,037

F-87

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 16 (Continued)


Balance at close of period — 3/31/04				$	142,635,037
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		639,742
Other		0

				$	639,742
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/05				$	143,274,779
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		319,605
Other		0

				$	319,605
Deductions during period:
Cost of real estate sold	$	(8,337,484	)
Other		0

					(8,337,484	)

Balance at close of period — 3/31/06				$	135,256,900

F-88

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 16 (Continued)

Reconciliation of Accumulated Depreciation current year changes


Balance at beginning of period — 4/1/92				$	0
Current year expense	$	0

Balance at close of period — 3/31/93				$	0
Current year expense	$	1,347,806

Balance at close of period — 3/31/94				$	1,347,806
Current year expense	$	3,630,765

Balance at close of period — 3/31/95				$	4,978,571
Current year expense	$	5,098,416

Balance at close of period — 3/31/96				$	10,076,987
Current year expense	$	4,859,372

Balance at close of period — 3/31/97				$	14,936,359
Current year expense	$	4,709,137

Balance at close of period — 3/31/98				$	19,645,496
Current year expense	$	4,715,345

Balance at close of period — 3/31/99				$	24,360,841
Current year expense	$	4,748,152

Balance at close of period — 3/31/00				$	29,108,993
Current year expense	$	4,694,454

Balance at close of period — 3/31/01				$	33,803,447
Current year expense	$	4,524,002

Balance at close of period — 3/31/02				$	38,327,449
Current year expense	$	4,501,163

Balance at close of period — 3/31/03				$	42,828,612
Current year expense	$	4,482,706

Balance at close of period — 3/31/04				$	47,311,318
Current year expense	$	4,397,188

Balance at close of period — 3/31/05				$	51,708,506
Current year expense	$	4,113,191
Reduction for real-estate sold		(3,792,773	)

Balance at close of period — 3/31/06				$	52,028,924

F-89

Boston Capital Tax Credit Fund III LP — Series 17

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to			Gross Amount at Which Carried
			Initial Cost to Company				Acquisition			at Close of Period												Life on Which
					Buildings and							Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements			Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

ANNADALE HOUSING		12,106,016		226,000		12,180,150		389,778			226,000		12,569,928		12,795,928		3,782,852		6/90		2/89	5-50 yrs
ARTESIA PROPERTIES		1,364,632		30,730		1,865,231		9,786			30,730		1,875,017		1,905,747		823,708		9/94		9/94	5-27.5 yrs
ASPEN RIDGE		969,247		36,000		2,004,059		65,045			36,000		2,069,104		2,105,104		949,635		11/93		9/93	5-27.5 yrs
BLADENBORO		987,201		16,000		1,213,015		(26,766	)		16,000		1,186,249		1,202,249		475,086		7/95		3/95	5-27.5 yrs
BREWER ST		1,089,332		0		2,296,514		35,093			0		2,331,607		2,331,607		1,107,228		7/93		6/93	5-27.5 yrs
BRIARWOOD APTS		878,672		38,500		20,850		1,209,587			38,952		1,230,437		1,269,389		351,631		7/93		6/93	5-27.5 yrs
BRIARWOOD VILLAGE		1,103,487		42,594		1,418,259		3,781			42,594		1,422,040		1,464,634		633,719		5/94		10/93	5-27.5 yrs
BRIARWOOD DEKALB		1,104,789		96,000		2,943,443		32,333			96,000		2,975,776		3,071,776		935,451		6/94		10/93	5-40 yrs
CAIRO HOUSING		1,045,101		17,000		1,309,062		111,249			17,000		1,420,311		1,437,311		716,117		4/93		5/93	7-27.5 yrs
CAMBRIDGE YMCA		1,775,541		95,200		5,135,233		142,883			95,200		5,278,116		5,373,316		2,429,158		12/93		4/93	5-27.5 yrs
CANEYVILLE PROPERTIES		462,921		36,000		601,775		(13,800	)		36,000		587,975		623,975		284,978		4/93		5/93	5-27.5 yrs
CLINTON ESTATES		720,632		47,533		891,872		64,586			47,533		956,458		1,003,991		409,724		12/94		12/94	5-27.5 yrs
CLOVERPORT PROPERTIES		725,431		21,500		947,659		(7,038	)		21,500		940,621		962,121		447,598		7/93		4/93	5-27.5 yrs
COLLEGE GREEN		3,800,000		225,000		6,774,847		117,242			225,000		6,892,089		7,117,089		2,834,977		8/95		3/95	5-27.5 yrs
CROFTON ASSOC.		776,400		46,511		961,097		14,444			46,511		975,541		1,022,052		307,720		3/93		4/93	5-27.5 yrs
CYPRESS POINT		3,012,326		265,000		4,794,440		353,723			265,000		5,148,163		5,413,163		1,658,476		12/94		2/94	5-27.5 yrs
DEERWOOD VILLAGE		621,087		29,138		804,512		3,582			29,138		808,094		837,232		353,408		7/94		2/94	5-27.5 yrs
DOYLE VILLAGE		1,140,477		100,000		1,435,520		6,304			100,000		1,441,824		1,541,824		641,427		4/94		9/93	5-27.5 yrs
GALLAWAY ASSOC.		1,027,711		35,600		1,307,158		47,270			35,600		1,354,428		1,390,028		420,010		5/93		4/93	5-27.5 yrs
GLENRIDGE		1,997,809		350,000		2,208,213		7,278			350,000		2,215,491		2,565,491		720,578		6/94		6/94	5-27.5 yrs

F-90

Boston Capital Tax Credit Fund III LP — Series 17

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to		Gross Amount at Which Carried
			Initial Cost to Company				Acquisition		at Close of Period												Life on Which
					Buildings and						Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements		Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

GREEN ACRES		1,039,355		173,447		1,366,874		90,849		173,447		1,457,723		1,631,170		627,613		11/94		1/95
GREENWOOD PLACE		1,040,008		44,400		299,685		1,183,122		44,400		1,482,807		1,527,207		431,674		8/94		11/93	7-40 yrs
HACKLEY BARCLAY		2,709,596		174,841		4,603,493		326,279		175,000		4,929,772		5,104,772		2,303,129		12/94		12/93	5-27.5 yrs
HENSON CREEK		3,983,950		945,000		7,971,879		53,692		945,000		8,025,571		8,970,571		2,672,686		4/94		5/93	5-27.5 yrs
HICKMAN ASSOC.		517,878		24,000		673,642		9,779		24,000		683,421		707,421		207,426		12/93		11/93	5-27.5 yrs
HOUSTON VILLAGE		665,833		11,500		850,901		3,387		11,500		854,288		865,788		381,114		5/94		12/93	5-27.5 yrs
IVYWOOD		3,666,492		290,542		5,712,656		40,027		290,542		5,752,683		6,043,225		2,712,695		10/93		6/93	5-27.5 yrs
JONESTOWN MANOR		846,177		0		311,764		957,365		36,900		1,269,129		1,306,029		360,602		12/94		12/93	7-40 yrs
LARGO CENTER		4,035,388		1,012,500		7,262,001		82,566		1,012,500		7,344,567		8,357,067		2,246,818		6/94		3/93	5-27.5 yrs
LEE TERRACE		1,451,575		93,246		4,573		1,775,306		93,246		1,779,879		1,873,125		786,009		12/94		2/94	5-27.5 yrs
MIDLAND HOUSING		892,443		60,000		2,422,788		73,582		60,000		2,496,370		2,556,370		940,712		6/94		9/93	5-27.5 yrs
MOUNT VERNON		2,325,897		200,000		3,141,984		548,452		200,000		3,690,436		3,890,436		1,456,271		11/94		11/94	5-27.5 yrs
OAKWOOD OF BENNETSVILLE		853,944		60,000		1,074,857		20,101		60,000		1,094,958		1,154,958		505,606		12/93		9/93	5-27.5 yrs
OPELOUSAS POINT		1,345,049		50,000		559,121		1,415,455		50,000		1,974,576		2,024,576		598,941		3/94		11/93	5-27.5 yrs
PALMETTO VILLAS		1,590,200		60,724		2,034,151		18,400		60,724		2,052,551		2,113,275		701,180		4/94		5/94	5-27.5 yrs
PARK PLACE II		1,138,326		112,000		1,408,102		22,078		112,000		1,430,180		1,542,180		642,188		4/94		2/94	7-27.5 yrs
PINEHURST		784,831		24,000		1,033,022		48,826		24,000		1,081,848		1,105,848		501,974		2/94		2/94	5-27.5 yrs
QUAIL VILLAGE		852,781		30,450		1,060,273		2,468		30,450		1,062,741		1,093,191		456,465		2/94		9/93	7-27.5 yrs
SEA BREEZE		1,204,354		94,000		1,515,733		7,276		94,000		1,523,009		1,617,009		633,124		1/95		3/94		N/A
SHAWNEE HOUSING		993,782		182,786		2,347,227		113,423		182,786		2,460,650		2,643,436		1,235,581		10/92		2/93	7-27.5 yrs
SIXTH ST APTS		2,175,015		151,687		1,123,504		3,200,593		162,687		4,324,097		4,486,784		1,383,149		12/94		12/93	5-27.5 yrs
SKOWHEGAN HOUSING		1,514,085		100,000		2,121,472		127,131		100,000		2,248,603		2,348,603		773,962		8/94		9/94	5-27.5 yrs

F-91

Boston Capital Tax Credit Fund III LP — Series 17

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to		Gross Amount at Which Carried
			Initial Cost to Company				Acquisition		at Close of Period												Life on Which
					Buildings and						Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements		Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

SOLEDAD		1,891,273		340,000		2,005,222		0		340,000		2,005,222		2,345,222		509,502		1/94		10/93	5-50 yrs
SUGARWOOD PARK		3,260,174		281,875		5,949,680		41,991		281,875		5,991,671		6,273,546		2,472,295		7/95		4/94	5-27.5 yrs
VOORHEESVILLE		1,070,241		74,600		1,254,914		94,168		74,600		1,349,082		1,423,682		636,805		5/93		7/93	7-27.5 yrs
WAYNSBURG HOUSING		1,456,764		169,200		2,113,822		151,327		18,100		2,265,149		2,283,249		643,385		12/95		7/94	10-40 yrs
WHITE CASTLE		757,960		84,800		948,687		27,046		84,800		975,733		1,060,533		426,485		5/94		6/94	27.5 yrs

		80,772,183		6,599,904		112,284,936		13,001,049		6,497,315		125,285,985		131,783,300		47,530,872

Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 2005.

There we no carrying costs as of December 31, 2005. The Column has been omitted for presentation purposes.

F-92

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 17

Reconciliation of Land, Building & Improvements current year changes


Balance at beginning of period — 4/1/93				$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		58,662,502
Improvements, etc		0
Other		0

				$	58,662,502
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/94				$	58,662,502
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		31,044,766
Improvements, etc		39,965,487
Other		0

				$	71,010,253
Deductions during period:
Cost of real estate sold	$	0
Other		(26,680	)

					(26,680	)

Balance at close of period — 3/31/95				$	129,646,075
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		9,769,183
Improvements, etc		11,596,518
Other		0

				$	21,365,701
Deductions during period:
Cost of real estate sold	$	0
Other		(13,800	)

					(13,800	)

Balance at close of period — 3/31/96				$	150,997,976

F-93

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 17 (Continued)


Balance at close of period — 3/31/96				$	150,997,976
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		12,406,150
Improvements, etc		133,058
Other		0

				$	12,539,208
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/97				$	163,537,184
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		337,191
Improvements, etc		0
Other		0

				$	337,191
Deductions during period:
Cost of real estate sold	$	0
Other		(1,598,364	)

					(1,598,364	)

Balance at close of period — 3/31/98				$	162,276,011
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		200,765
Other		0

				$	200,765
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/99				$	162,476,776

F-94

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 17 (Continued)


Balance at close of period — 3/31/99				$	162,476,776
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		292,965
Other		0

				$	292,965
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/00				$	162,769,741
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		252,942
Other		0

				$	252,942
Deductions during period:
Cost of real estate sold	$	0
Other		(500,929	)

					(500,929	)

Balance at close of period — 3/31/01				$	162,521,754
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		525,052
Other		0

				$	525,052
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/02				$	163,046,806

F-95

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 17 (Continued)


Balance at close of period — 3/31/02				$	163,046,806
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		376,998
Other		0

				$	376,998
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/03				$	163,423,804
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		638,913
Other		0

				$	638,913
Deductions during period:
Cost of real estate sold	$	(6,249,483	)
Other		0

					(6,249,483	)

Balance at close of period — 3/31/04				$	157,813,234
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		265,229
Other		0

				$	265,229
Deductions during period:
Cost of real estate sold	$	(26,715,597	)
Other		0

					(26,715,597	)

Balance at close of period — 3/31/05				$	131,362,866

F-96

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 17 (Continued)


Balance at close of period — 3/31/05			$	131,362,866
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		420,434
Other		0

			$	420,434
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/06			$	131,783,300

F-97

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 17 (Continued)

Reconciliation of Accumulated Depreciation current year changes


Balance at beginning of period — 4/1/93				$	0
Current year expense	$	727,342

Balance at close of period — 3/31/94				$	727,342
Current year expense	$	4,342,560

Balance at close of period — 3/31/95				$	5,069,902
Current year expense	$	4,963,158

Balance at close of period — 3/31/96				$	10,033,060
Current year expense	$	6,281,850

Balance at close of period — 3/31/97				$	16,314,910
Current year expense	$	5,040,935

Balance at close of period — 3/31/98				$	21,355,845
Current year expense	$	5,033,530

Balance at close of period — 3/31/99				$	26,389,375
Current year expense	$	4,909,920

Balance at close of period — 3/31/00				$	31,299,295
Current year expense	$	4,387,090

Balance at close of period — 3/31/01				$	35,686,385
Current year expense	$	4,846,606

Balance at close of period — 3/31/02				$	40,532,991
Current year expense	$	4,739,144

Balance at close of period — 3/31/03				$	45,272,135
Current year expense	$	4,532,137
Reduction for real-estate sold		(2,899,018	)

Balance at close of period — 3/31/04				$	46,905,254
Current year expense	$	3,850,470
Reduction for real-estate sold		(7,100,462	)

Balance at close of period — 3/31/05				$	43,655,262
Current year expense	$	3,875,610

Balance at close of period — 3/31/06				$	47,530,872

F-98

Boston Capital Tax Credit Fund III LP — Series 18

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to			Gross Amount at Which Carried
			Initial Cost to Company				Acquisition			at Close of Period												Life on Which
					Buildings and							Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements			Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

ARCH DEVELOPMENT		1,618,505		107,387		6,724,849		118,969			112,853		6,843,818		6,956,671		2,758,478		12/94		4/94	7-27.5 yrs
AURORA		1,351,589		65,000		1,704,709		74,615			65,000		1,779,324		1,844,324		865,038		9/93		9/93	5-27.5 yrs
BEAR CREEK		4,440,703		488,011		8,884,145		65,623			491,639		8,949,768		9,441,407		4,294,943		4/95		3/94	5-27.5 yrs
CHATHAM MANOR		1,346,081		75,000		1,727,394		93,039			75,000		1,820,433		1,895,433		861,530		12/93		1/94	5-27.5 yrs
CHELSEA SQUARE		301,393		21,000		939,281		6,450			21,000		945,731		966,731		380,659		12/94		8/94	7-34 yrs
CLARKE SCHOOL		2,442,278		200,000		5,493,464		226,288			200,000		5,719,752		5,919,752		1,626,484		12/94		12/94	5-27.5 yrs
ELLIJAY RENTAL		812,465		48,000		1,000,609		2,336			48,000		1,002,945		1,050,945		334,003		1/95		1/94	40 yrs
EVERGREEN		2,660,383		157,537		4,337,312		623,152			157,537		4,960,464		5,118,001		2,342,043		1/95		8/94	5-27.5 yrs
GLEN PLACE		1,053,931		60,610		3,489,218		(169,758	)		60,610		3,319,460		3,380,070		1,445,947		6/94		4/94	5-27.5 yrs
HARRIS HOUSING		1,536,753		200,000		266,624		2,569,852			160,000		2,836,476		2,996,476		750,982		11/95		6/94	5-27.5 yrs
HUMBOLDT		694,230		40,191		845,252		26,528			40,191		871,780		911,971		367,151		4/95		8/94	5-27.5 yrs
JACKSON HOUSING		842,320		30,250		1,080,272		(7,162	)		30,250		1,073,110		1,103,360		451,445		6/94		1/94	5-27.5 yrs
LAKEVIEW MEADOWS		1,509,339		88,920		2,775,712		74,733			88,920		2,850,445		2,939,365		844,967		5/94		8/93	5-27.5 yrs
LANTHROP PROP		719,203		34,800		931,788		28,924			34,800		960,712		995,512		446,334		5/94		4/94	5-27.5 yrs
LEESVILLE ELDERLY		1,296,590		144,000		2,018,242		0			144,000		2,018,242		2,162,242		583,702		6/94		6/94	7-40 yrs
LOCKPORT		984,624		125,000		1,524,202		0			125,000		1,524,202		1,649,202		432,087		9/94		7/94	5-27.5 yrs
MAPLE LEAF		1,073,681		22,860		1,355,390		50,327			22,860		1,405,717		1,428,577		431,058		12/94		8/94	5-27.5 yrs
MARENGO PARK		733,829		50,010		886,695		5,220			50,010		891,915		941,925		407,329		3/94		10/93	5-27.5 yrs
NATCHITOCHES		942,455		50,000		1,634,279		10,000			50,000		1,644,279		1,694,279		454,800		12/94		6/94	7-40 yrs
NEWTON I		789,132		57,500		979,345		4,201			57,500		983,546		1,041,046		423,631		9/94		11/93	5-27.5 yrs

F-99

Boston Capital Tax Credit Fund III LP — Series 18

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to		Gross Amount at Which Carried
			Initial Cost to Company				Acquisition		at Close of Period												Life on Which
					Buildings and						Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements		Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

OSKALOOSA I		470,947		32,000		589,423		1,822		32,000		591,245		623,245		255,142		9/94		11/93	5-27.5 yrs
PARVINS		613,480		41,508		1,741,048		4,742		41,508		1,745,790		1,787,298		786,216		11/93		8/93	5-27.5 yrs
PEACHTREE		1,444,021		157,027		1,617,470		56,469		157,027		1,673,939		1,830,966		875,595		7/93		1/94	5-27.5 yrs
PONDEROSA		1,450,784		82,454		1,903,972		114,247		82,454		2,018,219		2,100,673		643,484		5/94		3/94	5-27.5 yrs
PRESTON WOODS		690,484		66,000		2,515,136		57,108		66,000		2,572,244		2,638,244		1,238,386		12/94		12/93	5-27.5 yrs
RICHMOND MANOR		1,001,195		54,944		1,285,522		43,107		54,944		1,328,629		1,383,573		601,101		6/94		6/94	5-27.5 yrs
RIO GRANDE		2,088,392		96,480		2,999,680		87,571		96,480		3,087,251		3,183,731		882,865		5/94		6/94	5-27.5 yrs
RIPLEY HOUSING		481,217		14,000		646,850		127,241		14,000		774,091		788,091		212,609		7/94		1/94	5-40 yrs
SAN JOAQUIN		1,773,314		55,000		2,463,181		22,475		55,000		2,485,656		2,540,656		582,496		12/94		3/94	5-50 yrs
TROY ESTATES		668,098		45,000		826,432		115,031		45,000		941,463		986,463		407,590		1/94		12/93	5-27.5 yrs
VIRGINIA AVENUE		1,179,072		121,238		3,510,339		12,226		121,238		3,522,565		3,643,803		1,490,059		10/94		10/94	5-27.5 yrs
VISTA LOMA		1,572,050		267,612		1,600,128		280,695		267,612		1,880,823		2,148,435		579,462		9/94		5/94	5-27.5 yrs
VIVIAN ELDERLY		228,446		45,000		1,668,938		0		45,000		1,668,938		1,713,938		489,331		9/94		7/94	7-40 yrs
WESTMINSTER MEADOWS		1,949,222		250,000		3,605,890		22,684		250,000		3,628,574		3,878,574		1,688,815		11/94		12/93	5-27.5 yrs

		42,760,206		3,394,339		75,572,791		4,748,755		3,363,433		80,321,546		83,684,979		31,235,762

Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 2005.

There we no carrying costs as of December 31, 2005. The Column has been omitted for presentation purposes.

F-100

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 18

Reconciliation of Land, Building & Improvements current year changes


Balance at beginning of period — 4/1/93			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		4,002,185
Improvements, etc		0
Other		0

			$	4,002,185
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/94			$	4,002,185
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		42,200,169
Improvements, etc		19,531,960
Other		0

			$	61,732,129
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/95			$	65,734,314
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		16,282,424
Other		0

			$	16,282,424
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/96			$	82,016,738

F-101

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 18 (Continued)


Balance at close of period — 3/31/96			$	82,016,738
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		137,752
Other		0

			$	137,752
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/97			$	82,154,490
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		164,466
Other		0

			$	164,466
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/98			$	82,318,956
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		200,573
Other		0

			$	200,573
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/99			$	82,519,529

F-102

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 18 (Continued)


Balance at close of period — 3/31/99			$	82,519,529
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		90,225
Other		0

			$	90,225
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/00			$	82,609,754
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		204,609
Other		0

			$	204,609
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/01			$	82,814,363
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		125,890
Other		0

			$	125,890
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/02			$	82,940,253

F-103

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 18 (Continued)


Balance at close of period — 3/31/02			$	82,940,253
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		164,756
Other		0

			$	164,756
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/03			$	83,105,009
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		224,824
Other		0

			$	224,824
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/04			$	83,329,833
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		105,841
Other		0

			$	105,841
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/05			$	83,435,674

F-104

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 18 (Continued)


Balance at close of period — 3/31/05			$	83,435,674
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		249,305
Other		0

			$	249,305
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/06			$	83,684,979

F-105

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 18 (Continued)

Reconciliation of Accumulated Depreciation current year changes


Balance at beginning of period — 4/1/93			$	0
Current year expense	$	39,475

Balance at close of period — 3/31/94			$	39,475
Current year expense	$	911,009

Balance at close of period — 3/31/95			$	950,484
Current year expense	$	2,835,031

Balance at close of period — 3/31/96			$	3,785,515
Current year expense	$	3,000,815

Balance at close of period — 3/31/97			$	6,786,330
Current year expense	$	2,884,157

Balance at close of period — 3/31/98			$	9,670,487
Current year expense	$	2,798,960

Balance at close of period — 3/31/99			$	12,469,447
Current year expense	$	2,799,855

Balance at close of period — 3/31/00			$	15,269,302
Current year expense	$	2,761,702

Balance at close of period — 3/31/01			$	18,031,004
Current year expense	$	2,752,123

Balance at close of period — 3/31/02			$	20,783,127
Current year expense	$	2,632,895

Balance at close of period — 3/31/03			$	23,416,022
Current year expense	$	2,613,670

Balance at close of period — 3/31/04			$	26,029,692
Current year expense	$	2,598,384

Balance at close of period — 3/31/05			$	28,628,076
Current year expense	$	2,607,686

Balance at close of period — 3/31/06			$	31,235,762

F-106

Boston Capital Tax Credit Fund III LP — Series 19

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to			Gross Amount at Which Carried
			Initial Cost to Company				Acquisition			at Close of Period												Life on Which
					Buildings and							Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements			Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

ANKENEY HOUSING		3,123,015		217,500		8,144,577		185,262			217,500		8,329,839		8,547,339		2,437,626		3/95		8/94	10-40 yrs
CARROLLTON VILLA		1,322,464		60,015		2,682,843		187,165			60,015		2,870,008		2,930,023		1,196,039		3/95		6/94	5-27.5 yrs
CLARKE SCHOOL		2,442,278		200,000		5,493,464		226,288			200,000		5,719,752		5,919,752		1,626,484		12/94		12/94	12-40 yrs
FOREST ASSOCIATES		643,029		13,900		396,391		483,148			13,900		879,539		893,439		555,820		3/78		4/95	5-27.5 yrs
GARDEN GATE\FT WORTH		5,332,618		678,867		2,532,572		6,918,195			678,867		9,450,767		10,129,634		3,860,629		4/95		5/95	5-27.5 yrs
GARDEN GATE\PLANO		6,689,633		689,318		844,673		9,132,567			689,318		9,977,240		10,666,558		4,118,215		3/95		2/94	5-27.5 yrs
HEBBRONVILLE APTS.		502,019		50,711		650,002		20,243			50,711		670,245		720,956		201,668		4/94		12/93	7-40 yrs
HOLLISTER INV GRP		1,700,611		400,000		1,906,641		(61,972	)		400,000		1,844,669		2,244,669		394,536		5/95		3/95	5-50 yrs
HOLTS SUMMIT SQUARE		1,058,956		110,373		524,966		2,045,001			110,373		2,569,967		2,680,340		1,121,001		12/94		6/94	5-27.5 yrs
INDEPENDENCE PROPERTIES		828,754		38,500		503,166		517,210			38,500		1,020,376		1,058,876		317,618		12/94		6/94	5-40 yrs
JEFFERSON SQUARE		2,297,571		385,000		4,548,650		378,852			385,000		4,927,502		5,312,502		1,609,897		8/95		5/94	5-27.5 yrs
JENNY LYNN PROPERTIES		781,043		65,000		958,809		7,000			65,000		965,809		1,030,809		408,737		9/94		1/94	5-27.5 yrs
JEREMY ASSOCIATES		3,339,540		522,890		6,954,516		724,025			522,890		7,678,541		8,201,431		2,278,176		12/95		6/96	5-40 yrs
LONE STAR SR.		593,775		20,492		835,453		0			20,492		835,453		855,945		240,210		5/94		12/93	7-40 yrs
MADISON L.P.		634,602		42,707		810,978		14,549			32,568		825,527		858,095		359,158		10/94		12/93	5-27.5 yrs
MANSURA VILLA		936,321		20,254		301,687		1,023,072			25,000		1,324,759		1,349,759		350,245		8/95		5/94	5-27.5 yrs
MARTINDALE APTS.		654,753		40,270		861,032		29,803			40,270		890,835		931,105		268,571		1/94		12/93	7-40 yrs
MUNFORD VILLAGE		737,299		24,800		980,102		19,587			24,800		999,689		1,024,489		312,768		4/94		10/93	5-40 yrs
NORTHPOINTE LP		4,313,751		371,000		9,834,451		1,377			371,000		9,835,828		10,206,828		2,610,749		6/95		7/94	5-27.5 yrs
SAHALE HEIGHTS		834,295		72,000		1,062,350		111			72,000		1,062,461		1,134,461		459,834		6/94		1/94	5-27.5 yrs

F-107

Boston Capital Tax Credit Fund III LP — Series 19

Schedule III — Real Estate and Accumulated Depreciation
March 31, 2006


							Cost
							Capitalized
							Subsequent to			Gross Amount at Which Carried
			Initial Cost to Company				Acquisition			at Close of Period												Life on Which
					Buildings and							Buildings and				Accumulated		Date of		Date		Depreciation
Description	Encumbrances		Land		Improvements		Improvements			Land		Improvements		Total		Depreciation		Construction		Acquired		is Computed

SHERWOOD KNOLL		759,006		45,000		963,996		38,204			45,000		1,002,200		1,047,200		332,982		4/94		10/93	5-40 yrs
SUGARWOOD PARK		3,260,174		281,875		5,949,680		41,991			281,875		5,991,671		6,273,546		2,472,295		7/95		4/94	5-27.5 yrs
SUMMERSET HOUSING		916,826		68,665		1,160,825		(25,664	)		68,665		1,135,161		1,203,826		416,826		11/95		1/94	7-27.5 yrs
VISTA’S ASSOC.		4,707,271		831,600		7,055,338		28,264			831,600		7,083,602		7,915,202		2,351,164		1/95		12/93	5-27.5 yrs
WEDGEWOOD LANE		974,692		85,000		1,106,604		37,185			85,000		1,143,789		1,228,789		376,191		9/94		6/94	5-40 yrs
WILLOWOOD PARK		3,871,449		511,051		6,867,791		187,592			511,051		7,055,383		7,566,434		3,047,194		12/94		11/93	5-27.5 yrs

		53,255,745		5,846,788		73,931,557		22,159,055			5,841,395		96,090,612		101,932,007		33,724,633

Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 2005.

There we no carrying costs as of December 31, 2005. The Column has been omitted for presentation purposes.

F-108

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 19

Reconciliation of Land, Building & Improvements current year changes


Balance at beginning of period — 4/1/93			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		9,012,131
Improvements, etc		0
Other		0

			$	9,012,131
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/94			$	9,012,131
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		24,845,235
Improvements, etc		13,156,474
Other		0

			$	38,001,709
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/95			$	47,013,840
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		410,291
Improvements, etc		52,257,570
Other		0

			$	52,667,861
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/96			$	99,681,701

F-109

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 19 (Continued)


Balance at close of period — 3/31/96				$	99,681,701
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		7,477,406
Improvements, etc		594,800
Other		0

				$	8,072,206
Deductions during period:
Cost of real estate sold	$	(8,720,704	)
Other		(124,499	)

					(8,845,203	)

Balance at close of period — 3/31/97				$	98,908,704
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		224,896
Other		0

				$	224,896
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/98				$	99,133,600
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		228,405
Other		0

				$	228,405
Deductions during period:
Cost of real estate sold	$	0
Other		0

					0

Balance at close of period — 3/31/99				$	99,362,005

F-110

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 19 (Continued)


Balance at close of period — 3/31/99			$	99,362,005
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		280,218
Other		0

			$	280,218
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/00			$	99,642,223
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		493,159
Other		0

			$	493,159
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/01			$	100,135,382
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		432,177
Other		0

			$	432,177
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/02			$	100,567,559

F-111

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 19 (Continued)


Balance at close of period — 3/31/02			$	100,567,559
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		77,825
Other		0

			$	77,825
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/03			$	100,645,384
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		751,197
Other		0

			$	751,197
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/04			$	101,396,581
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		271,562
Other		0

			$	271,562
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/05			$	101,668,143

F-112

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 19 (Continued)


Balance at close of period — 3/31/05			$	101,668,143
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		263,864
Other		0

			$	263,864
Deductions during period:
Cost of real estate sold	$	0
Other		0

				0

Balance at close of period — 3/31/06			$	101,932,007

F-113

Notes to Schedule III

Boston Capital Tax Credit Fund III LP — Series 19 (Continued)

Reconciliation of Accumulated Depreciation current year changes


Balance at beginning of period — 4/1/93			$	0
Current year expense	$	98,220

Balance at close of period — 3/31/94			$	98,220
Current year expense	$	418,177

Balance at close of period — 3/31/95			$	516,397
Current year expense	$	2,779,948

Balance at close of period — 3/31/96			$	3,296,345
Current year expense	$	2,591,856

Balance at close of period — 3/31/97			$	5,888,201
Current year expense	$	3,087,218

Balance at close of period — 3/31/98			$	8,975,419
Current year expense	$	3,096,686

Balance at close of period — 3/31/99			$	12,072,105
Current year expense	$	3,079,193

Balance at close of period — 3/31/00			$	15,151,298
Current year expense	$	3,106,817

Balance at close of period — 3/31/01			$	18,258,115
Current year expense	$	3,126,263

Balance at close of period — 3/31/02			$	21,384,378
Current year expense	$	2,850,562

Balance at close of period — 3/31/03			$	24,234,940
Current year expense	$	3,332,665

Balance at close of period — 3/31/04			$	27,567,605
Current year expense	$	3,077,499

Balance at close of period — 3/31/05			$	30,645,104
Current year expense	$	3,079,529

Balance at close of period — 3/31/06			$	33,724,633

F-114

EX-23 3 b61524bcexv23.htm EX-23 CONSENTS OF EXPERTS EX-23 Consents of Experts

INDEPENDENT AUDITOR’S REPORT

To the Partners
Bridlewood, Limited Partnership
Horse Cave, Kentucky

I have, audited the accompanying balance sheets of Bridlewood, Limited Partnership, a limited partnership, RHS Project No:20-050-611149839 as of December 31, 2005 and 2004, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management My responsibility is to express an opinion on these financial statements based on my audits.

I conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture, Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that I plant and perform the audits to obtain reasonable assurance abaci whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that the audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bridlewood Limited Partnership, RHS Project No:20-050-611149839 as of December 31, 2005 and 2004, and the and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole, The supplemental information on pages 10 through 13 is presented for purposes of additional analysisand is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FHA 1930-8) Parts I and II for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, I have also issued a report dated February 1, 2006 on my consideration of Bridlewood, Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of my audit. However, the partnership has determined that it is not required to have, nor was I engaged to perform, an audit of its internal control over financial reporting. My audit included only the consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, I express no such opinion.

DONALD W. CAUSEY, P.C.
Gadsden, Alabama
February 1, 2006

INDEPENDENT AUDITOR’S REPORT

To the Partners
Chestnut Hill Estates, Ltd,
Altoona, AL

We have audited the accompanying balance sheets of Chestnut Hill Estates, Ltd. A limited partnership, RHS Project No: 01-028-631016355 as of December 31, 2005 and 2004, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Chestnut Hill Estates, Ltd RHA Project No: 01-028-631016355 as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purse of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts 1 and II for the years ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Plural Housing Services and is also not a required pad of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 4, 2006 on our consideration of Chestnut Hill Estates, Ltd.’s, internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. However, the partnership has determined that is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included only the consideration of intern control over financial repenting as a basis for designing audit procedures that are appropriate in the circumstance, but not for the purpose of expressing are opinion on the effectiveness of the partnership s internal control over financial reporting. Accordingly, we express no such opinion.

DONALD W. CAUSEY & ASSOCIATES
Gadsden, Alabama
February 4, 2006

INDEPENDENT AUDITOR’S REPORT

To the Partners of
Curwensville House Associates
(A Maine Limited Partnership)

We have audited the accompanying balance sheets of Curwensville House Associates as of December 31, 2005 and 2004, the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and performed the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing are opinion on the effectiveness of the Partnership’s interval control over financial reporting, Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Curwensville House Associates of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued reports dated March 3, 2006, on our consideration of Curwensville House Associates’ internal control and on our tests of its compliance with certain provisions of laws, regulation, contracts and grants. Those reports are an integral part of an audit performed in accordance with Government Auditing standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information is presented for the purposes of additional analysis and is not a required part of the basic financial statements of the Partnership. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole

Dauby O’Connor & Zaleski
March 3, 2006
Carmel, Indiana

INDEPENDENT AUDITOR’S REPORT

To the Partners
Osage Housing Associates Limited Partnership

We have audited the accompanying balance sheets of Osage Housing Associates Limited Partnership as of December 31, 2005 and 2004 and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards required that we plan and perform the audits to obtain reasonable assurances about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all_. material respects, the financial position of Osage Housing Associates Limited Partnership as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Mayer Hoffmann McCann P.C, Topeka, Kansas January 19, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Sioux Falls Housing Associates One Limited Partnership

We have audited the accompanying balance sheets of Sioux Falls Housing Associates One Limited Partnership as of December 31, 2005 and 2004, and the related statements of operations, partners’ equity and cash flows for the years there ended. We^-d statements of operations, partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in: all material respects, the financial position of Sioux Falls Housing Associates One Limited Partnership as of December 2005 and 2004, and the results of its operations are its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Mayer Hoffman & McCann P,C.
Topeka, Kansas
January 2,2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Sunset Square I, Limited Partnership
Scottsboro, Alabama

We have audited the accompanying balance sheets of Sunset Square I, Limited Partnership, a limited whip, RHS Project No:01—036-631030935 as of December 31 2005 and 2004, and the related statements of operations, deficit and cash flaws for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generated in the United States of America and Government Auditing Standards issued by the Comptroller of the United States, the U.S. Department of Agriculture, Fanners Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence shorting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above presently, in all material respects, the financial position of Sunset Square I, Limited Partnership RHS Project No: 01-036-631030935 as of December 31, 2005 and 2004, and the results of its operations, and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 through 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and 11 for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements, Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 31, 2006 on our consideration of Sunset Square I, Limited Partnership’s, internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be head in conjunction with this report in considering the results of our audit. However, the partnership has determined that A is not required to have, nor were we engaged to performs, an audit of Airs internal control over financial reporting. Our audit included only the consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

DONALD W. CAUSEY & ASSOCIATES
Gadsden, Alabama
January 31, 2006

INDEPENDENT AUDITORS REPORT

To the Partners
Bentonia Elderly, L.P.
Bentonia, Mississippi

We have audited the accompanying balance streets of Bentonia Elderly, L.P.. a limited partnership, RHS Project No: 28-082-00813081 as of December 31, 2005 and 2004, and the related statements of operations; partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture, Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, An audit also includes assessing the accounting principles used and significant estimates unlade by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bentonia Elderly, L.P, RHS Project No: 28-082-0640813081 as of December 31, 2005 and 2004, and the results of its; operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of funning an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and II for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Dousing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 28, 2006 on our consideration of Bentonia Elderly, L.P.’s, internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

DONALD W. CAUSEY & ASSOCIATES
Gadsden, Alabama
January 28, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Blairsville Rental Housing, L.L.P.

We have audited the accompanying balance sheets of BLAIRSVILLE RENTAL HOUSING, L.L.P USDA Rural Development Case No.11-044-581965564), a limited partnership, as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Audit Program issued in December 1989 by the Rural Development Services Office of the U.S. Department of Agriculture, formerly known as the Farmers Home Administration. Those standards and the Audit Program require that we plan and perform the audits to obtain: reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, can a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of BLAIRSVILLE RENTAL HOUSING, L.L.P. as of December 31, 2005 and 2004, and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing_Standards, we have also issued our report dated February 28, 2006, on our consideration of BLAIRSVILLE RENTAL HOUSING, L.L.P.’s internal control and our report dated February 28, 2006, and on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of farming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 — 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Habif, Aroget & Wynne, LLP
Atlanta, Georgia
February 28, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Blairsville Rental Housing, L.L.P. II

We have audited the accompanying balance sheets of BLAIRSVIILLE RENTAL HOUSING, L.L.P. II (USDA Rural Development Case No.11-0144-581965565), a limited partnership, as of_. December 31 2005 and 2004. and the related statements of operations, changes in partners’ equity (deficit), and cash flows for the years their ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion can these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Audit Program Rural Development Services Office of the U.S. Department of Agriculture, formerly known as the Farmers Horne Administration. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of BLAIRSVILLE RENTAL HOUSING, L.L.P, it as of ^-December 31; 2005 and 2004 and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2006, an our consideration of BLAIRSVILLE RENTAL, HOUSING, L.L.P. II’s internal control and our report dated February 28, 2006, and on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 — 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation. to the basic financial statements taken as a whole.

Habif, Arogeti & Wynne, LLP
Atlanta, Georgia
February 28, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Butler Rental Housing, L.L.P.

We have audited the accompanying balance streets of BUTLER RENTAL HOUSING: L. L, P. (USDA Rural Development Case No.11-033-581955623), a limited partners as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the Public Company Accounting Oversight Board (United States), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Audit Program of the Rural Development Services Office of the U.S. Department of Agriculture, formerly known as the Farmers Home Administration. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion can the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of BUTLER RENTAL. HOUSING, L.L.P. as of December 31, 2005 and 2004, and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2006_: on our consideration of BUTLER RENTAL HOUSING, L.L.P.’s internal control and our report dated February 28, 2006, on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 — 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Habif, Arogeti &Wynne
Altanta, Georgia
February 28, 2006

INDEPENDENT AUDITORS REPORT

To the Partners
Davenport Housing Associates Limited Partnership

We have be accompanying balance sheets of Davenport Housing Associate Limited Partnership as of December 31. 2005 and 2004 and the related statements of operations, partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Are audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Davenport Housing Associates Limited Partnership as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Mayer, Hoffman & McCann
Topeka, Kansas
January 31, 2006

INDEPENDENT AUDITORS’ REPORT”

To the Partners of
Eastman Elderly Housing, L.L.P.

We have audited the accompanying balance sheets of Davenport Housing Associates Limited Partnership, as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the_-standards of the Public Company Accounting Oversight Board (United States), the standards applicable to financial statements is contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Audit Program of the Rural Development Services Office of the U.S. Department of Agriculture, formerly known as the Farmers Home Administration. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position EASTMAN ELDERLY HOUSING, L.L.P. as of December 31, 2005 and 2004, and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2006, on our consideration of EASTMAN ELDERLY DOUSING, L.L.P.’s internal control and our report dated February 28, 2006, on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole, The supplemental information on pages 12 — 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion_; is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Habif, Arogenti & Wynne
Atlanta, Georgia
February 28, 2006

INDEPENDENT AUDITOR’S REPORT

To the Partners
Falcon Ridge Apartments,
Ltd. Beatyville, Kentucky

I have audited the accompanying balance sheets of Falcon Ridge Apartments, Ltd. a limited partnership, RHS Project No: 20-065-631023072 as of December 31, 2005 and 2004 and the related statements of operations, partners^‘ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership^‘s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture, Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that I plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates trade by management, as well as evaluating the overall financial statement presentation. I believe that the audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Falcon Ridge Apartments, Ltd., RHS Project No: 20-065-631023072 as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with conformity with accounting principles generally accepted in the United States.

The audits were mad: for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-5) Parts I and H for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, I have also issued a report dated February 1, 2006 on my consideration of Falcon Ridge Apartments, Ltd.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of my audit. However, the partnership has determined that it is not required to have, nor was I engaged to perform, an audit of its internal control over financial reporting. My audit included only the consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, I express no such opinion.

DONALD W. CAUSEY & ASSOCIATES P.C.
Gadsden, Alabama
February 1, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Newport Manor, Limited Partnership
Newport, Tennessee

We have audited the accompanying balance sheets of_. Newport Manor, Limited Partners, a limited partnership, RHS Project No: 48-015-631011392 as of December 31, 2005 and 2004, and the related statements of operations, partners’ capital and cash flows for the years then envied. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture, Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test oasis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Newport Manor, Limited Partnership, RHS Project No: 48-015-631011392 as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whale. The supplemental information on pages 10 and 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and I1 for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 29, 2006 on our consideration of Newport Manor, Limited Partnership’s, internal control over financial reporting and on our test_‘s of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. However, the partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included only the consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

DONALD W. CAUSEY & ASSOCIATES
Gadsden, Alabama
January 29, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Tchula Elderly, L.P.
Tchula, Mississippi

We have audited the accompanying balance sheets of Tchula Elden L,P. a limited partnership, RHS Project No.: 28-026-6400813082 as of December 31, 2005 and 2004, and of operations, partners^‘ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture, Farmers Horne Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we playa and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining_, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material, respects, the financial position of Tchula Elderly, L.P., RHS Project No.: 28-026-640813082 as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 12 is presented for purposes of additional analysis and is not a. required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and II for the years ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whale.

In accordance with Government Auditing Standards, we have also issued a report dated February 23, 2006 on our consideration of Tchula Elderly, L.P.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read it conjunction with this report in considering the results of our audit. However, the partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included only the consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

DONALD W. CAUSEY & ASSOCIATES
Gadsden, Alabama
February 23, 2006

INDEPENDENT AUDITORS REPORT

To the Partners
Sixth Street Partners Limited Partnership

We have audited the accompanying balance sheet of sixth Street Partners Limited Partnership as of December 31, 2005 and the related statements of operations, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of our Sixth Street Partners Limited Partnership as of December 31, 2005, and the results of its operations, changes in partners’ equity and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole as of and for the year ended December 31, 2005. The supplemental information on page 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Mayer Hoffman McCann
Leawood, Kansas
January 18, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Quail Village Limited Partnership

We have audited the accompanying balance sheets of Quail Village Limited Partnership as of December 31, 2004 and 2003, and the related statements of operations, changes in partners’ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), the standards applicable to financial statement audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Audit Program of the Rural Development Services Office of the U.S. Department of Agriculture, formerly known as the Farmers Home Administration. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatements. The Partnership has determined that it is not required to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Quail Village Limited Partnership as of December 31, 2004 and 2003, and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 4, 2005, on our consideration of Quail Village Limited Partnership’s internal control and our report dated February 4, 2005, on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12-14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Habif, Arogenti & Wynne
Atlanta, Georgia
February 4, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Cambridge Family YMCA Affordable Housing, L.P.
Cambridge, Massachusetts

We have audited the accompanying balance sheets of Cambridge Family YMCA Affordable Housing, L.P. (“the Partnership”) as of December 31, 2005 and 2004 and the related statements of operations, changes in partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cambridge Family YMCA Affordable Housing, L.P. as of December 31, 2005 and 2004 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The supplemental information contained on page 15 is presented for the purpose of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Brown & Brown
Boston, Massachusetts
February 16, 2006

INDEPENDENT AUDITORS’ REPORT

The Partners
Hackley-Barclay Limited Dividend Housing Association Limited Partnership
(A Michigan Limited Partnership)
Kalamazoo, Michigan

We have audited the accompanying balance sheets of Hackley-Barclay Limited Dividend Housing Association Limited Partnership (A Michigan Limited Partnership), as of December 31, 2005 and 2004, and the related statements of operations, partners’ equity/(deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financing reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hackley-Barclay Limited Dividend Housing Association Limited Partnership, as of December 31, 2005 and 2004, and the results of its operations, changes in partners’ equity/(deficit) and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 17 and 18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to auditing procedures applied in the audits of the basic financial statements, and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Schoonover, Boyer & Associates
Columbus, Ohio
January 26, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Shawnee Housing Associates Limited Partnership

We have audited the accompanying balance sheets of Shawnee Housing Associates Limited Partnership as of December 31, 2005 and 2004, and the related statements of operations, partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Shawnee Housing Associates Limited Partnership as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Mayer Hoffman McCann P.C.
Topeka, Kansas
January 17, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Waynesburg House Associates
(A Maine Limited Partnership)

We have audited the accompanying balance sheets of Waynesburg House Associates as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Waynesburg House Associates as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued reports dated March 3, 2006, on our consideration of Waynesburg House Associates’ internal control and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Partnership. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Dauby O’Connor & Zaleski, LLC
March 3, 2005
Carmel, Indiana

INDEPENDENT AUDITORS’ REPORT

To the Partners
Glen Place Apartments Limited Partnership

We have audited the accompanying balance sheet of Glen Place Apartments Limited Partnership as of December 31, 2005, and the related statements of operations, partners’ equity (deficit), and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Glen Place Apartments Limited Partnership, as of December 31, 2005, and the results of its operations, changes in partners’ equity (deficit), and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 13 is presented purpose of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied to the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Larson, Allen, Weishair & Co., L.L.P.
Eau Claire, Wisconsin
January 25, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Ellijay Rental Housing, L.L.P

We have audited the accompanying balance sheets of Ellijay Rental Housing, L.L.P. (USDA Rural Development Case No. 10-61-528022315), a limited partnership, as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and the Audit Program of the Rural Development Service Office of the U.S. Department of Agriculture, formerly known as the Farmers Home Administration. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting . Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our reporting.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ellijay Rental Housing, L.L.P., as of December 31,2005 and 2004, and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2006, on our consideration of Ellijay Rental Housing, L.L.P.’s internal control and our report dated February 28, 2006, on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12-15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Habif, Arogent, & Wynne
Atlanta, Georgia
February 28, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Jackson Housing, L.L.P.

We have audited the accompanying balance sheets of Jackson Housing, L.L.P. (USDA Rural Development Case No. 10-018-582031912), a limited partnership, as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Audit Program issued by the Rural Development Services Office of the U.S. Department of Agriculture, formerly known as the Farmers Home Administration. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statement referred to above present fairly, in all material respects, the financial position of Jackson Housing, L.L.P. as of December 31, 2005 and 2004, and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2006, on our consideration of Jackson Housing, L.L.P.’s internal control and our report dated February 28, 2006, on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 12-15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Habif, Arogenti & Wynne
Atlanta, Georgia
February 28, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Leesville Elderly Apartments Partnership
A Louisiana Partnership in Commendam
Mansfield, Louisiana

We have audited the accompanying balance sheets of Leesville Elderly Apartments Partnership, A Louisiana Partnership in Commendam (the Partnership), as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test as is, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Leesville Elderly Apartments Partnership, A Louisiana Partnership in Commendam as of December 31, 2005 and 2004, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United states of America.

Pailet, Meunier and LeBlanc, L.L.P.
Metairie, Louisiana
March 13, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Lockport Elderly Housing Apartments
A Louisiana Partnership in Commendam
Mansfield, Louisiana

We have audited the accompanying balance sheets of Lockport Elderly Housing Apartments, A Louisiana Partnership in Commendam (the Partnership) as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe the tour audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lockport Elderly Housing Apartments, A Louisiana Partnership in Commendam as of December 31, 2005 and 2004, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Pailet, Meunier and LeBlanc, L.L.P.
Metairie, Louisiana
March 21, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Natchitoches Elderly Apartments
A Louisiana Partnership in Commendam
Mansfield, Louisiana

We have audited the accompanying balance sheets of Natchitoches Elderly Apartments, A Lousiana Partnership in Commendam (the Partnership) as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Natchitoches Elderly Apartments, A Louisiana Partnership in Commendam as of December 31, 2005 and 2004, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Pailet, Meunier and LeBlanc, L.L.P.
Metairie, Louisiana
March 17, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Vivian Elderly Apartments
A Louisiana Partnership in Commendam
Mansfield, Louisiana

We have audited the accompanying balance sheets of Vivian Elderly Apartments, A Lousiana Partnership in Commendam (the Partnership) as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vivian Elderly Apartments, A Louisiana Partnership in Commendam as of December 31, 2005 and 2004, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United states of America.

Pailet, Meunier and LeBlanc, L.L.P.
Metairie, Louisiana
March 11, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Ankeny Housing Associates Two Limited Partnership

We have audited the accompanying balance sheets of Ankeny Housing Associates Two Limited Partnership as of December 31, 2005 and 2004, and the related statements of operations, partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ankeny Housing Associates Two Limited Partnership as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Mayer, Hoffman, McCann P.C.
Topeka, Kansas
January 31, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Munford Village, Ltd.
Munford, Alabama

We have audited the accompanying balance sheets of Munford Village, Ltd., a limited partnership, RHS Project No: 01-061-631011774 as of December 31, 2005 and 2004, and the related statements of operations, partners’ deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United states, the U.S. Department of Agriculture, Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Munford Village, Ltd. RHS Project No: 01-061-631011774 as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United states.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and II for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material the respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 23, 2006 on our consideration of Munford Village, Ltd., internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. However, the partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included only the consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

Donald W. Causey & Associates, P.C.
Gadsden, Alabama
January 23, 2006

INDEPENDENT AUDITORS REPORT

We have audited the accompanying balance sheets of Sherwood Knoll, Limited Partnership, a limited partnership, RHS Project No: 01-025-631032411 as of December 31, 2005 and 2004, and the related statements of operations, partners’ deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture, Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 through 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmhA 1930-8) Parts I and II for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 30, 2006 on our consideration of Sherwood Knoll, Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. However, the partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included only the consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

Donald W. Causey & Associates, P.C.
Gadsden, Alabama
January 30, 2006

INDEPENDENT AUDITORS’ REPORT

Partners
April Gardens Apartments III Limited Partnership
San Juan, Puerto Rico

We have audited the accompanying balance sheets of April Gardens Apartments III Limited Partnership as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity (deficiency), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and the US Department of Agriculture, Farmers Home Administration Audit Program Handbook, issued in October 2004. Those standards and the audit program require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of April Gardens Apartments III Limited Partnership as of December 31, 2004 and 2003, and the results of its operations, changes in partners’ equity (deficiency) and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2005, on our consideration of the Partnership’s internal control over financial reporting and on our tests on its compliance with certain provisions of laws, regulations, contracts, loan covenants and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

TORRES LLOMPART, SANCHEZ RUIZ, L.L.P.
San Juan, PR
February 7, 2005

INDEPENDENT AUDITORS’ REPORT

Partners
Arkansas City Properties, A Limited Partnership D/B/A North Trait
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Arkansas City Properties, A Limited Partnership, D/B/A North Trail as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Arkansas City Properties, A Limited Partnership, D/B/A North Trail as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 9, 2005, on our consideration of the Partnership’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

BKD, L.L.P.
Fort Smith, AR
February 9, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners
Beckwood Manor Eight Limited Partnership

We have audited the accompanying balance sheets of Beckwood Manor Eight Limited Partnership, RD Project No. 03-009-0710677267 (the Partnership), as of December 31, 2004 and 2003, and the related statements of profit (loss), changes in partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Beckwood Manor Eight Limited Partnership as of December 31, 2004 and 2003, and its results of operations, changes in partners’ equity (deficit), and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 14, 2005 on our consideration of the Partnership’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

LITTLE, SHANEFELT, MARSHALL, ROMINE & CO.
Little Rock, AZ
February 14, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Graham Housing Associates Limited Partnership Raleigh, North Carolina

We have audited the accompanying balance sheets of Graham Housing Associates Limited Partnership, as of December 31, 2004 and 2003 and the related statements of operations and changes in partners’ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Graham Housing Associates Limited Partnership as of December 31, 2004 and 2005, and the results of its operations and the changes in partners’ equity and cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued reports dated February 15, 2005 on our consideration of Graham Housing Associates Limited Partnership’s internal control over financial reporting and on our testing of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of those reports is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included in the report is presented for the purposes of additional analysis and is not a required part of the financial statements of Graham Housing Associates Limited Partnership. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

THOMAS, JUDY & TUCKER, P.A.
Raleigh, NC
February 15, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Grantsville Associates Limited Partnership DBA Meadow View Apartments
Rockville, Maryland

We have audited the accompanying balance sheets of Grantsville Associates Limited Partnership (a limited partnership), DBA Meadow View Apartments, Case No. 24-012-521702442, as of December 31, 2004 and 2003, and the related statements of income, changes in partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the U.S. Department of Agriculture, Farmers Home Administration “Audit Program,” issued in December 1989. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, the evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Grantsville Associates Limited Partnership, DBA Meadow View Apartments, Case No. 24-012-521702442, at December 31, 2004 and 2003, and the results of its operations, and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards and the U.S. Department of Agriculture, Farmers Home Administration “Audit Program,” issued in December 1989, we have also issued a report dated January 6, 2005, on our consideration of Grantsville Associates Limited Partnership’s internal control and on compliance with specific requirements applicable to Rural Housing Service Programs. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

FENTRESS, BROWN, CPAs & ASSOCIATES, LLC
Certified Public Accountants
Columbus, OH
January 6, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners
Harrisonville Properties II, LP

We have audited the accompanying balance sheets of Harrisonville Properties II, LP as of December 31, 2003 and 2004, and the related statements of income, owners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Harrisonville Properties II, LP as of December 31, 2003 and 2004, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

HOWE & ASSOCIATES, PC
Columbia, MO
March 14, 2005

INDEPENDENT AUDITORS’ REPORT

Partners
Healdton Properties, A Limited Partnership
D/B/A SavannahPark of Healdton
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Healdton Properties, A Limited Partnership, D/B/A SavannahPark of Healdton as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Healdton Properties, A Limited Partnership, D/B/A SavannahPark of Healdton as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

BKD, L.L.P.
Fort Smith, AR
February 9, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners
Higginsville Estates, LP

We have audited the accompanying balance sheets of Higginsville Estates, LP as of December 31, 2003 and 2004, and the related statements of income, owners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Higginsville Estates, LP as of December 31, 2003 and 2004, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

HOWE & ASSOCIATES, PC
Columbia, Missouri
February 23, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners
Kearney Estates, L.P.

We have audited the accompanying balance sheets of Kearney Estates, LP as of December 31, 2003 and 2004, and the related statements of income, owners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Kearney Estates, LP as of December 31, 2003 and 2004, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

HOWE & ASSOCIATES, PC
Columbia, MO
February 23, 2005

INDEPENDENT ACCOUNTANTS’ REPORT

To the Partners
Laurelwood Apartments, Phase II, A Limited Partnership Columbia, South Carolina

We have audited the accompanying balance sheets of Laurelwood Apartments, Phase II, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 2004 and 2003 and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Laurelwood Apartments, Phase II, A Limited Partnership, as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 19, 2005 on our consideration of Laurelwood Apartments, Phase II, A Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DURANT, SCHRAIBMAN & LINDSEY
Columbia, SC
January 19, 2005

INDEPENDENT AUDITORS REPORT

To the Partners
Madison Partners Limited Partnership

We have audited the accompanying balance sheets of Madison Partners limited Partnership, as of December 31, 2004 and 2003, and the related statements of operations, partners’ (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Madison Partners Limited Partnership as of December 31, 2004 and 2005, and the results of its operations, changes in partners’ (deficit), and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the Purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 and 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

HAWKINS, ASH, BAPTIE & CO L.L.P
La Crosse, WI
January 25, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners
Maryville Properties, LP

We have audited the accompanying balance sheets of Maryville Properties, LP as of December 31, 2003 and 2004, and the related statements of income, owners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Maryville Properties, LP as of December 31, 2003 and 2004, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

HOWE & ASSOCIATES, PC
Columbia, Missouri
February 2, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners
Oak Grove Villa Apartments, LP

We have audited the accompanying balance sheets of Oak Grove Villa Apartments, LP as of December 31, 2003 and 2004, and the related statements of income, owners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Oak Grove Villa Apartments, LP as of December 31, 2003 and 2004, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

HOWE & ASSOCIATES, PC
Columbia, MO
March 10, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners
Osceola Estates, LP

We have audited the accompanying balance sheets of Osceola Estates, LP as of December 31, 2003 and 2004, and the related statements of income, owners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Osceola Estates, LP as of December 31, 2003 and 2004, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

HOWE & ASSOCIATES, PC
Columbia, Missouri
March 7, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
P.D. C. Fifty Five Limited Partnership

We have audited the accompanying balance sheets of P.D.C. Fifty Five Limited partnership, RD Project No. 03-052-710665737 (the Partnership), as of December 31, 2004 and 2003, and the related statements of profit (loss), change in partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of P.D.C. Fifty Five Limited Partnership as of December 31, 2004 and 2003, and its results of operations, changes in partners’ equity (deficit), and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 12, 2005 on our consideration of the Partnership’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulation, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report considering the results of our audit.

LITTLE, SHANEYFELT, MARSHALL, ROMINE & CO.
Little Rock, AR
February 12, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Rio Mimbres II, Ltd.
and USDA Rural Development

We have audited the accompanying balance sheets of Rio Mimbres II, Ltd. (a limited partnership) as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rio Mimbres II, Ltd. as of December 31, 2004 and 2003, and the results of its operations and the changes in partners^‘ equity (deficit) and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have, also issued our report dated January 18, 2005, on our consideration of Rio Mimbres II, Ltd.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of Rio Mimbres II, Ltd. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

KEYSTONE ACCOUNTING
Farmington, MI
January 18, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Virgen del Pozo Limited Partnership
Mayaguez, PR

We have audited the accompanying statements of financial position of Virgen del Pozo Limited Partnership, (RRH -515 Project No. 63-016060477485) (“the Partnership”) as of December 31, 2004 and 2003, and the related statements of operations, changes in partners’ equityand cash flows for the years then ended These financial statements are the responsibility of the Partnership’s management Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Virgen del Pozo Limited Partnership as of December 31. 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with the Government Auditing Standards, we have also issued our report dated January 31. 2005 on our consideration of Virgen del Pozo Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provision of laws, regulations, contracts and grants agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

The accompanying supplemental information (shown on pages 11-14) is presented for the purposes of additional analysis and is not a required part of the basic financial statements of Virgen del Pozo Limited Partnership. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

ORTIZ & LOPEZ
Mayaguez, Puerto Rico
January 31, 2005

INDEPENDENT AUDITORS’ REPORT

Partners
Villa del Mar Limited Partnership San Juan, Puerto Rico

We have audited the accompanying balance sheets of Villa del Mar Limited Partnership as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity (deficiency), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Villa del Mar Limited Partnership as of December 31, 2004 and 2003, and the results of its operations, changes in partners’ equity (deficiency) and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 2, 2005, on our consideration of the Partnership’s internal control over financial reporting and on our tests on its compliance with certain provisions of laws, regulations, contracts, loan covenants and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

TORRES LLOMPART, SANCHEZ RUIZ, L.L.P.
San Juan, PR
February 2, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Westernport Associates Limited Partnership
DBA Hammond Heights Apartments
Rockville, Maryland

We have audited the accompanying balance sheets of Westernport Associates Limited Partnership (a limited partnership), DBA Hammond Heights Apartments, Case No. 24-001-521701023, as of December 31, 2004 and 2003, and the related statements of income, changes in partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Westernport Associates Limited Partnership, DBA Hammond Heights Apartments, Case No. 24-001-521701023, at December 31, 2004 and 2003, and the results of its operations, and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards and the U.S. Department of Agriculture, Farmers Home Administration “Audit Program,” issued in December 1989, we have also issued a report dated January 6, 2005, on our consideration of Westernport Associates Limited Partnership’s internal control and on compliance with specific requirements applicable to Rural Housing Service Programs. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunct^tion with this report in considering the results of our audit.

FENTRESS, BROWN, CPAs & ASSOCIATES, LLC
Columbus, OH
January 6, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners

We have audited the accompanying balance sheets of Aztec Properties II, LP as of December 31, 2003 and 2004, and the related statements of income, owners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Aztec Properties II, LP as of December 31, 2003 and 2004, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

HOWE & ASSOCIATES, PC
Columbia, Missouri
February 7, 2005

INDEPENDENT ACCOUNTANTS’ REPORT

To the Partners
Canterfield Manor of Denmark,
A Limited Partnership
Columbia, South Carolina

We have audited the accompanying balance sheets of Canterfield Manor of Denmark, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 2004 and 2003 and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Canterfield Manor of Denmark, A Limited Partnership, as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 19, 2004 on our consideration of Canterfield Manor of Denmark, A Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DURANT, SCHRAIBMAN & LINDSAY
Columbia, SC
January 19, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Cass Partners Limited Partnership

We have audited the accompanying balance sheets of Cass Partners Limited Partnership (the Partnership) as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe thatour audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cass Partners Limited Partnership as of December 31, 2004 and’ 2003, and the results of its operations; changes in partners’ equity, and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States ‘of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Omaha, NE
January 31, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Deer Run Limited Partnership

We have audited the accompanying balance sheets of Deer Run Limited Partnership as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Deer Run Limited Partnership as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic

PHILLIPS, DORSEY, THOMAS, WATERS & BRAFFORD, P.A.
Henderson, NC
January 15, 2005

INDEPENDENT ACCOUNTANTS’ REPORT

To the Partners
Holly Tree Manor of Holly Hill, A Limited Partnership

We have audited the accompanying balance sheets of Holly Tree Manor of Holly Hill, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Holly Tree Manor of Holly Hill, A Limited Partnership, as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 19, 2005 on our consideration of Holly Tree Manor of Holly Hill, A Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DURANT, SCHRAIBMAN & LINDSAY
Columbia, SC
January 19, 2005

INDEPENDENT AUDITORS’ REPORT

Partners
Idabel Properties, A Limited Partnership DB/A Laurel Ridge

We have audited the accompanying balance sheets of Idabel Properties, A Limited Partnership, D/B/A Laurel Ridge as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Idabel Properties, A Limited Partnership, D/B/A Laurel Ridge as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

BKD, LLP
Fort Smith, AR
February 9, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Joiner Elderly, L.P.

I have audited the accompanying balance sheet of Joiner Elderly, L.P. as of December 31, 2004 and 2003 and the related statements of operations. partners’ capital and cash flow for the years then ended. These financial statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with auditing standards generally accepted in the United States of’ America. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Joiner Elderly, L.P. as of December 31, 2004 and 2003 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

My audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and. in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. .

BOB T. ROBINSON
Jackson, MS
January 20, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Mariner’s Pointe Limited Partnership I and Mariner’s Pointe Limited Partnership II

We have audited the accompanying balance sheets of Mariner’s Pointe Limited Partnership I and Mariner’s Pointe Limited Partnership II as of December 31, 2004 and 2003 and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Mariner’s Pointe Limited Partnership I and Mariner’s Pointe Limited Partnership II as of December 31, 2004 and 2003 and the results of its operations and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information provided, as identified in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

VIRCHOW, KRAUSE & COMPANY
Madison, WI
January 21, 2005

INDEPENDENT AUDITORS’ REPORT

Meadows of Southgate Limited Dividend Housing Association Limited Partnership

We have audited the accompanying balance sheet of Meadows of Southgate Limited Dividend Housing Association Limited Partnership as of December 31, 2004 and 2003 and the related statements of operations, partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Meadows of Southgate Limited Dividend Housing Association Limited Partnership as of December 31, 2004 and 2003 and the results of its operations, partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

PLANTE & MORAN
February 4, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Mid City Associates Limited Partnership

We have audited the accompanying balance sheets of Mid City Associates Limited Partnership as of December 31, 2004 and 2003, and the related statements of operations, partners^‘ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As described in Note 1, these financial statements were prepared in conformity with the accounting practices prescribed or permitted by the New Jersey Housing and Mortgage Finance Agency, and are not intended to be a presentation in conformity with accounting principles generally accepted in the United States of America.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Mid City Associates Limited partnership as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in accordance with the New Jersey Housing and Mortgage Finance Agency Policies and Procedure Manual, revised July 1, 1997.

The accompanying supplemental information (shown on pages 20 to 27) is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Partnership. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued our reports dated February 11, 2005 on our consideration of Mid City Associates Limited Partnership’s internal controls an on our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. Those reports are an integral part of the audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

REITBERGER, POLLEKOFF & KOZAK, P.C.
Vienna, VA
February 11, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Vista Linda Apartments Limited Partnership

I have audited the accompanying balance sheet of Vista Linda Apartments Limited Partnership, (Project No. 63-016-0660472028) as of December 31, 2004 and 2003, and the related statements of loss, changes in partners deficit and cash flows for the years then ended. These financial statements are the responsibility of the project’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with Auditing Standards Generally Accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require me to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vista Linda Apartments Limited Partnership, as of December 31, 2004 and 2003, and the results of its operations, changes in partners deficit and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, I have also issued reports dated February 24, 2005, on my consideration of Vista Linda Apartments Limited Partnership internal control over financial reporting and on my test of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of those reports is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of my audit.

My audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements of Vista Linda Apartments Limited Partnership. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated, in all material respects in relation to the basic financial statements taken as a whole.

MANUEL R. MARTINEZ JIWAIJ
Puerto Rico
February 24, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Turtle Creek Family, L.P.

I have audited the accompanying balance sheet of Turtle Creek Family, L.P. (RD Case number 03-022-6408 1 08 10 02-2), as of December 31, 2004 and 2003 and the related statements of income, changes in partners’ capital, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Turtle Creek Family, L.P. as of December 31, 2004 and 2003 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, I have also issued my report dated January 20, 2005 on my consideration of Turtle Creek Family, L.P.’s internal control and on my tests of its compliance with certain provisions of laws, regulations, contracts, and grants. This report is an integral part of the audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of my audit.

My audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information, including separate reports on compliance with laws and regulations and on internal controls, is presented for the purposes of additional analysis and is not a required part of the financial statements of Turtle Crock Family, L.P. Such information has been subjected to the auditing procedures applied in the audits of the financial statements and, in my opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole.

The annual budgets of Turtle Creek Family, L.P. included in the accompanying prescribed form RD 1930-7 (Rev 7-03) hay e not been compiled or examined by me, and I do not express any form of assurance on them. in addition they may contain departures from guidelines for presentation of prospective financial information established by the American Institute of Certified Public Accountants. The actual results may vary from the presentation and the variations may be material.

BOB T. ROBINSON
Jackson, MS
January 20, 2005

INDEPENDENT ACCOUNTANTS’ REPORT

To the Partners
West End Manor Apartments, A Limited Partnership Columbia, South Carolina

We have audited the accompanying balance sheets of West End Manor Apartments, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of West End Manor Apartments, A Limited Partnership, as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 24, 2005 on our consideration of West End Manor Apartments, A Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DURANT, SCHRAIBMAN & LINDSAY
Columbia, SC
January 24, 2005

INDEPENDENT AUDITORS’ REPORT

Partners
Westville II Properties, A Limited Partnership
D/B/A SavannahPark of Westville
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Westville II Properties, A Limited Partnership, D/B/A SavannahPark of Westville as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Westville II Properties, A Limited Partnership, D/B/A SavannahPark of Westville as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

BKD, L.L.P.
Fort Smith, AR
February 9, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners Artesia Properties, LP

We have audited the accompanying balance sheets of Artesia Properties, LP as of December 31, 2003 and 2004, and the related statements of income, owners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Artesia Properties, LP as of December 31, 2003 and 2004, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

HOWE & ASSOCIATES, PC
Columbia, MO
February 12, 2005

INDEPENDENT AUDITORS’ REPORT

To The Partners
Briarwood Apartments,
a Limited Partnership

We have audited the accompanying balance sheets of Briarwood Apartments, A Limited Partnership as of December 31, 2004 and 2003, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America, and with Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Briarwood Apartments, A Limited Partnership as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 27, 2005 on our consideration of Briarwood Apartments, A Limited Partnership’s internal control over financial reporting and our consideration of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DIXON HUGHES
Columbia, SC
January 27, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Brewer Street Apartments Limited Partnership

We have audited the accompanying balance sheets of Brewer Street Apartments Limited Partnership as of December 31, 2004 and 2003, and the related statements of income, partners’ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Brewer Street Apartments Limited Partnership as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

BERNARD ROBINSON & COMPANY, L.L.P
Raleigh, NC
January 31, 2005

INDEPENDENT AUDITORS’ REPORT

To The Partners
Cairo Housing Company I East

We have audited the accompanying balance sheets of Cairo Housing Company I (a Limited Partnership) as of December 31, 2004 and 2003, and the related statements of income, partners’ deficiency and cash flows for the years then ended. These statements are the responsibility of the General Partners. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the partners, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cairo Housing Company I as of December 31, 2004 and 2003, and the results of its operations and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 8 2005, on our consideration of Cairo Housing Company I internal control and a report dated February 8, 2005, on its compliance with laws and regulations applicable to the basic financial statements. These reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

DiMARCO, ABIUSI & PASCARELLA, P.C.
Syracuse, NY
February 8, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners
College Greene Rental Associates, L.P.

We have audited the accompanying balance sheet of College Greene Rental Associates, L.P. (a limited partnership) as of December 31, 2004 and 2003, and the related statements of operations and partners’ capital (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of College Greene Rental Associates, L.P. as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying Supplemental Schedule of Cash Flow Available for Payment of Soft Debt Service is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

SALMIN, CELONA, WEHRLE & FLAHERTY, LLP
Rochester, NY
February 25, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Crofton Associates I, Limited Partnership

We have audited the accompanying balance sheets of Crofton Associates I, Limited Partnership, USDA-RD Project No.: 20-024-0621467587 as of December 31, 2004 and 2003, and the related statements of operations, changes in partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Crofton Associates I, Limited Partnership, USDA-RD Project No.: 20-024-0621467587 as of December 31, 2004 and 2003, and the results of its operations, changes in partners’ capital and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

Our audits were for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 27, 2005 on our consideration of the limited partnership’s internal control over financial reporting and on its compliance with laws and regulations.

HORNE, LLP
Jackson, TN
January 27, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Cypress Point, LP
Naples FL

We have audited the accompanying balance sheets of Cypress Point, LP (a Florida limited partnership), as of December 31, 2004 and 2003 and the related statements of operations, partners’ capital (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cypress Point, LP, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

MATTHEWS, CUTRER & LINDSEY, P.A.
Ridgeland, MS
February 14, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Gallaway Associates I, Limited Partnership

We have audited the accompanying balance sheets of Gallaway Associates I, Limited Partnership, USDA-RD Project No.: 48-024-621474763 as of December 31, 2004 and 2003, and the related statements of operations, changes in partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Gallaway Associates I, Limited Partnership, USDA-RD Project No.: 48-024-621474763 as of December 31, 2004 and 2003, and the results of its operations, changes in partners’ capital and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued a report dated January 31, 2005 on our consideration of the limited partnership’s internal control over financial reporting and on its compliance with laws and regulations.

HORNE, L.L.P
Jackson, Tennessee
January 31, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Hickman Associates II, Limited Partnership

We have audited the accompanying balance sheets of Hickman Associates II, Limited Partnership, USDA-RD Project No.: 20-038-621451228 as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements position. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hickman Associates II, Limited Partnership, USDA-RD Project No.: 20-038-621451228 as of December 31, 2004 and 2003, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

HORNE, L.L.P
Jackson, Tennessee
February 18, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Midland Housing Limited Partnership

We have audited the accompanying balance sheets of Midland Housing Limitedas of December 31, 2004 and 2003, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit Includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of Midland Housing Limited Partnership as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 15 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such Information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

PAGE, OLSON & COMPANY
Mt. Pleasant, MI
February 10, 2005

INDEPENDENT ACCOUNTANTS’ REPORT

To the Partners
Oakwood Manor of Bennettsville, a Limited Partnership
Columbia, South Carolina

We have audited the accompanying balance sheets of Oakwood Manor of Bennettsville, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Oakwood Manor of Bennettsville, A Limited Partnership, as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 20, 2005 on our consideration of Oakwood Manor of Bennettsville, A Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DURANT, SCHRAIBMAN & LINDSAY
Columbia, SC
January 20, 2005

INDEPENDENT AUDITORS’ REPORT

To The Partners
Voorheesville Housing Company I
Voorheesville, New York

We have audited the accompanying balance sheets of Voorheesville Housing Company I to Limited Partnership) as of December 31, 2004 and 2003, and the related statements of income, partners’ deficiency and cash flows for the years then ended. These statements are the responsibility of the General Partners. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the partners, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Voorheesville Housing Company I as of December 31, 2004 and 2003, and the results of its operations and cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

DiMARCO, ABIUSI & PASCARELLA, P.C.
Syracuse, NY
February 3, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners
Evergreen Hills Associates, L.P.

We have audited the accompanying balance sheet of Evergreen Hills Associates, L.P. (a limited partnership) as of December 31, 2004 and 2003, and the related statements of operations and partners’ capital (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Evergreen Hills Associates, L.P. as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

SALMIN, CELONA, WEHRLE & FLAHERTY, LLP
Rochester, NY
January 25, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Lakeview Meadows II Limited Dividend Housing Association Limited Partnership

We have audited the accompanying balance sheet of Lakeview Meadows II Limited Dividend Housing Association Limited Partnership, MSHDA Development No. 905, as of December 31, 2004 and 2003 and the related statements of operations, partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakeview Meadows II Limited Dividend Housing Association Limited Partnership, MSHDA Development No. 905, as of December 31, 2004 and 2003 and its results of operations, changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 4, 2005 on our consideration of Lakeview Meadows II Limited Dividend Housing Association Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

PLANT & MORAN, PLLC
East Lansing, MI
February 4, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners
Parvins Limited Partnership

We have audited the accompanying balance sheets of Parvins Limited Partnership as of December 31, 2004 and December 31, 2003, and the related “Statement of Operations”, “Statement of Partners’ Equity” and “Statement of Cash Flows” for the years thou ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, she financial position of Parvins Limited Partnership as of December 31, 2004 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 9 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

STRINGARI AND CIMER
Vineland, NJ
May 2, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners
Peach Tree, LLLP
Bethesda, Maryland

We have audited the accompanying balance sheets of Peach Tree, LLLP as of December 31, 2004 and 2003, and the related statements of income, changes in partners’ capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture Farmers Home Administration Audit Program. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Peach Tree, LLLP as of December 31, 2004 and 2003, and the results of its operations and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our reports dated March 5, 2005 on our consideration of Peach Tree, LLLP’s internal control and on its compliance with laws and regulations.

REGARDIE, BROOKS & LEWIS
Bethesda, MD
March 5, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners,
Ponderosa Meadows Limited Partnership

We have audited the accompanying balance sheets of Ponderosa Meadows Limited Partnership as of December 31, 2004 and 2003, and the related statements of income, changes in partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ponderosa Meadows Limited Partnership as of December 31, 2004 and 2003, and the results of its operations, changes in partners’ equity, and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards issued by the Comptroller General of the United States, we have also issued a report dated February 2, 2005, on our consideration of Ponderosa Meadows Limited Partnership’s internal control structure and its compliance with laws and regulations.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information shown on Pages 18 through 19 is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Partnership. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

KENNETH C. BOOTHE AND COMPANY, P.C.
Big Spring, TX
February 2, 2005

INDEPENDENT AUDITOR’S REPORT

To the Partners
Autumnwood Limited Partnership

I have audited the accompanying balance sheets of Autumnwood Limited Partnership as of December 31, 2003 and 2002 and the related statements of operations, changes in partners capital (deficit), and cash flows for the years then ended. These financial statements are the responsibility of management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Autumnwood Limited Partnership, as of December 31, 2003 and 2002 and the results of its operations, cash flows, and changes in partners’ capital (deficit) for the years then ended in conformity with generally accepted accounting principles.

In accordance with government auditing standards, I have also issued reports dated February 12, 2004 on my consideration of Autumnwood Limited Partnership’s internal control and on its compliance with laws and regulations.

My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements, and in my opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

Patterson & Company, P.C.
McLean, Virginia
February 12, 2004

INDEPENDENT AUDITOR’S REPORT

To the Partners
Bridlewood Limited Partnership
Horse Cave, Kentucky

I have audited the accompanying balance sheets of Bridlewood, Limited Partnership, a limited partnership, RHS Project No.: 20-050-611149839 as of December 31, 2003 and 2002, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that the audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bridlewood, Limited Partnership, RHS Project No.: 20-050-611149839 as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and II for the year ended December 31, 2003 and 2002, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, I have also issued a report dated February 1, 2004 on my consideration of Bridlewood, Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DONALD W. CAUSEY, CPA, P.C.
Gadsden, Alabama
February 1, 2004

Independent Accountants’ Report

To the Partners
Buena Vista Apartments, Phase II, A Limited Partnership
Columbia, South Carolina

We have audited the accompanying balance sheets of Buena Vista Apartments, Phase II, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 2003 and 2002 and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Buena Vista Apartments, Phase II, A Limited Partnership, as of December 3 1, 2003 and 2002, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 20, 2004 on our consideration of Buena Vista Apartments, Phase II, A Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Durant, Schraibman & Lindsay
Columbia, South Carolina
January 20, 2004

Independent Auditor’s Report

To the Partners of
California Investors VII
Mansfield, Massachusetts

We have audited the accompanying balance sheets of California Investors VII (a California Limited Partnership) as of December 31, 2003 and 2002, and the related statements of operations, partners’ capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of California Investors VII as of December 31, 2003 and 2002, and the results of its operations, changes in partners’ capital, and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information included in this report (shown on pages 18 and 19) is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Ercolini & Company LLP
Boston, Massachusetts
January 24, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Chestnut Hill Estates, Ltd.
Altoona, Alabama

We have audited the accompanying balance sheets of Chestnut Hill Estates, Ltd., a limited partnership, RHS Project No.: 01-028-631016355 as of December 31, 2003 and 2002, and the related statements of operations, partners’ deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Chestnut Hill Estates, Ltd., RHS Project No.:01-028-631016355 as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and 11 for the year ended December 31, 2003 and 2002, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 30, 2004 on our consideration of Chestnut Hill Estates, Ltd’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DONALD W. CAUSEY & ASSOCIATES, P.C.
Gadsden, Alabama
January 30, 2004

INDEPENDENT AUDITORS’ RE PORT

The Partners
The Hearthside 11 Limited Dividend
Housing Association Limited Partnership

We have audited the accompanying balance sheets of The Hearthside 11 Limited Dividend Housing Association Limited Partnership (a limited partnership) as of December 31, 2003 and 2002, and the related statements of operations, partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on the financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Hearthside 11 Limited Dividend Housing Association Limited Partnership as of December 31, 2003 and 2002, and the results of its operations, changes in partners’ equity, and cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 17 and 18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Schoonover Boyer & Associates
Columbus, Ohio
January 22, 2004

INDEPENDENT AUDITOR’S REPORT

To the Partners
LEBANON PROPERTIES III, LP

We have audited the accompanying balance sheets of Lebanon Properties III, LP as of December 31, 2002 and 2003, and the related statements of income, owners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lebanon Properties III, LP as of December 31, 2002 and 2003, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Howe & Associates, PC
Columbia, Missouri
February 17, 2004

Independent Auditor’s Report

To the Partners
Rainier Manor Associates Limited Partnership
Columbia, Maryland

We have audited the accompanying Balance Sheet of Rainier Manor Associates Limited Partnership as of December 31, 2003, and the related Statements of Profit and Loss, Partners’ Equity, and Cash Flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rainier Manor Associates Limited Partnership as of December 31, 2003, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our reports dated January 16, 2004 on our consideration of Rainier Manor Associates Limited Partnership’s internal controls and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

The accompanying supplemental information (shown on pages 14 to 19) is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Partnership. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

Aronson & Company
Rockville, Maryland
January 16, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Sunset Square I, Limited Partnership
Scottsboro, Alabama

We have audited the accompanying balance sheets of Sunset Square I, Limited Partnership, a limited partnership, RHS Project No.: 01-036-631030935 as of December 31, 2003 and 2002, and the related statements of operations, partners’ deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sunset Square I, Limited Partnership, RHS Project No.:01-036-631030935 as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 through 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and H for the year ended December 31, 2003 and 2002, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 30, 2004 on our consideration of Sunset Square 1, Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DONALD W. CAUSEY & ASSOCIATES, P.C.
Gadsden, Alabama
January 30, 2004

Independent Auditor’s Report

To the Partners
University Meadows Limited Dividend
Housing Association Limited Partnership

We have audited the accompanying balance sheet of University Meadows Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership), MSHDA Development No. 889, as of December 31, 2003 and 2002, and the related statements of income, partners’ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of University Meadows Limited Dividend Housing Association Limited Partnership, MSHDA Development No. 889, as of December 31, 2003 and 2002, and the results of its operations, changes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 6, 2004, on our consideration of University Meadows Limited Dividend Housing Association Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. The report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Plante & Moran, PLLC
East Lansing, Michigan
February 6, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
1413 Levenworth Historic Limited Partnership
Omaha, Nebraska

We have audited the accompanying balance sheets of 1413 Leavenworth Historic Limited Partnership (a Nebraska limited partnership) as of December 31, 2003 and 2002 and the related statements of operations, changes in partners’ capital accounts and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above Present fairly, in all material respects, the financial position of 1413 Leavenworth Historic Limited Partnership at December 31, 2003 and 2002 and the results of its operations, changes in partners’ capital accounts and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information on pages 11 and 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

BLACKMAN ASSOC
Omaha, Nebraska
April 7, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Bentonia Elderly, L.P.
Bentonia, Mississippi

We have audited the accompanying balance sheets of Bentonia Elderly, L.P., a limited partnership, RHS Project No.: 28-082-064081 as of December 31, 2003 and 2002, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bentonia Elderly, L.P., RHS Project No.:28-082-0640813081 as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and 11 for the year ended December 31, 2003 and 2002, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 10, 2004 on our consideration of Bentonia Elderly, L.P., internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DONALD W. CAUSEY & ASSOCIATES, P.C.
Gadsden, Alabama
February 10, 2004

Independent Auditor’s Report

To the Partners
Cumberland Wood Associates of Middlesboro, KY, Ltd.
Charlotte, North Carolina

We have audited the accompanying balance sheets of Cumberland Wood Associates of Middlesboro, KY, Ltd. (a Kentucky limited partnership) as of December 31, 2003 and 2002, and the related statements of operations, partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cumberland Wood Associates of Middlesboro, KY, Ltd. as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2004, on our consideration of the Partnership’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Partnership. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

BERNARD ROBINSON & COMPANY, LLP
Raleigh, North Carolina
January 31, 2004

Independent Auditors’ Report

To The Partners
Fairmeadow Apartments, Limited Partnership

We have audited the accompanying balance sheets of Fairmeadow Apartments, Limited Partnership as of December 31, 2003 and 2002, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Fairmeadow Apartments, Limited Partnership as of December 31, 2003 and 2002, and the results of its operations and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 29, 2004, on our consideration of Fairmeadow Apartments, Limited Partnership’s internal control over financial reporting and our consideration of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

CRISP HUGHES EVANS, LLP
Greenville, SC
January 29, 2004

INDEPENDENT AUDITOR’S REPORT

To the Partners
Falcon Ridge Apartments, Ltd.
Beatyville, Kentucky

I have audited the accompanying balance sheets of Falcon Ridge Apartments, Ltd., a limited partnership, RHS Project No.: 20-065-631023072 as of December 31, 2003 and 2002, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that the audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Falcon Ridge Apartments, Ltd., RHS Project No.:20-065-631023072 as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and H for the year ended December 31, 2003 and 2002, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, I have also issued a report dated February 1, 2004 on my consideration of Falcon Ridge Apartments, Ltd.’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of my audit.

DONALD W. CAUSEY, CPA, P.C.
Gadsden, Alabama
February 1, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Newport Manor, Limited Partnership
Newport, Tennessee

We have audited the accompanying balance sheets of Newport Manor, Limited Partnership, a limited partnership, RES Project No.: 48-015-631011392 as of December 31, 2003 and 2002, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Newport Manor, Limited Partnership, RHS Project No.: 48-015-631011392 as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and 11 for the years ended December 31, 2003 and 2002, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 11, 2004 on our consideration of Newport Manor, Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit

DONALD W. CAUSEY & ASSOCIATES, P.C.
Gadsden, Alabama
February 11, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Riviera Apts., Ltd.
Boston, Massachusetts

We have audited the accompanying Balance Sheets of Riviera Apts., Ltd. (a Florida Limited Partnership), as of December 31, 2003 and 2002, and the related Statements of Income, Partners’ Equity and Cash Flows for the years then ended. These financial statements are the responsibility of the management of Riviera Apts., Ltd. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, In all material respects, the financial position of Riviera Apts., Ltd. as of December 31, 2003 and 2002, and the results of its operations. the changes in partners’ equity and cash flows for the years then ended In conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

January 21, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Tchula Elderly, L.P.
Tchula, Mississippi

We have audited the accompanying balance sheets of Tchula Elderly, L.P. a limited partnership, RHS Project No.: 28-026-640813082 as of December 31, 2003 and 2002, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tchula Elderly, L.P., RHS Project No.:28-026-640813082 as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and R for the years ended December 31, 2003 and 2002, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 30, 2004 on our consideration of Tchula Elderly, L.P., internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DONALD W. CAUSEY & ASSOCIATES, P.C.
Gadsden, Alabama
January 30, 2004

INDEPENDENT AUDITOR’S REPORT

To the Partners
Westchester Village of Oak Grove, LP

We have audited the accompanying balance sheets of Westchester Village of Oak Grove, LP as of December 31, 2002 and 2003, and the related statements of income, owners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits,

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free, of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Westchester Village of Oak Grove, LP as of December 31, 2002 and 2003, and results of its operations, changes m owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

HOWE & ASSOCIATES, PC
Columbia, Missouri
February 24, 2004

INDEPENDENT AUDITOR’S REPORT

To the Partners
Westchester Village of St. Joseph, LP

We have audited the accompanying balance sheets of Westchester Village of St. Joseph, LP as of December 31, 2002 and 2003, and the related statements of income, owners equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted ‘in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Westchester Village of St. Joseph, LP as of December 31, 2002 and 2003, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

HOWE & ASSOCIATES, PC
Columbia, Missouri
February 23, 2004

INDEPENDENT AUDITOR’S REPORT

To the Partners
Annandale Housing Partners
(A California Limited Partnership)

We have audited the accompanying balance sheets of Annandale Housing Partners Limited Partnership (the “Partnership”), as of December 31, 2003 and 2002, and the related statements of operations, partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Partnership as of December 31, 2003 and 2002 and the results of its operations, changes in partners’ equity (deficit) and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Janzen, Tamberi & Wong Accountancy Corporation
Fresno, California
January 21, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Aspen Ridge Apartments Limited Partnership

We have audited the accompanying balance sheets of Aspen Ridge, Apartments Limited Partnership (a Nebraska limited partnership) as of December 31, 2003 and 2002 and the related statements of operations, changes in partners’ capital accounts and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Aspen Ridge Apartments Limited Partnership at December 31, 2003 and 2002 and the results of its operations, changes in partners’ capital accounts and cash flows for the years then ended in conformity with, accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information on pages 11 and 12 is presented for purposes of supplemental analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

BLACKMAN & ASSOCIATES
Omaha, Nebraska
April 5, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Cambridge Family YMCA Affordable Housing, L.P.

We have audited the accompanying balance sheets of Cambridge Family YMCA Affordable Housing, L.P. (the “Partnership”) as of December 31, 2003 and 2002 and the related statements of operations, changes in partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cambridge Family YMCA Affordable Housing, L.P. as of December 31, 2003 and 2002 and the results of its operations and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The supplementary information contained on page 16 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Brown & Brown, LLP
Boston, Massachusetts
February 6, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Hackley-Barclay Limited Dividend
Housing Association Limited Partnership

We have audited the accompanying balance sheets of Hackley-Barclay Limited Dividend Housing Association Limited Partnership (a Michigan Limited Partnership), as of December 31, 2003 and 2002, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing, the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hackley-Barclay Limited Dividend Housing Association Limited Partnership, as of December 31, 2003 and 2002, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 16 and 17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Schoonover Boyer & Associates
Columbus, Ohio
January 22, 2004

INDEPENDENT AUDITOR’S REPORT

To the Partners
Mt. Vernon Associates, L.P.

We have audited the accompanying balance sheet of Mt. Vernon Associates, L.P. (a limited partnership) as of December 31, 2003, and the related statements of operations and partners’ capital (deficit) and cash flows for the year then ended. These Financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Mt. Vernon Associates, L.P. as December 31, 2002, were audited by other auditors whose report dated February 7, 2003, expressed an unqualified opinion on those statements.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provide reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Mt. Vernon Associates, L.P. as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Matthew Cronin CPA PC
Yonkers, New York
February 1, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Sixth Street Partners Limited Partnership

We have audited the accompanying balance sheets of Sixth Street Partners Limited Partnership as of December 31, 2003 and 2002 and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sixth Street Partners Limited Partnership as of December 31, 2003 and 2002 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

Lopata, Flegel & Company, LLP
St. Louis, Missouri
January 15, 2004

INDEPENDENT AUDITORS’ REPORT

To The Partners
White Castle Citizens Partnership, Ltd.

We have audited the accompanying balance sheet of White Castle Senior Citizens Partnership Ltd., RHS Project No.: 22-024-721149468, as of December 31, 2003 and December 31, 2002, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of White Castle Senior Partnership, Ltd. as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated March 15, 2004 on our consideration of the Partnership’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, and contracts. This report is presented on page 28.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information presented in the Year End Report and Analysis (Form RHS 1930-8) Parts I through III and the Multiple Family Housing Project Budget (Form RHS 1930-7) Parts I through V for the year ended December 31, 2003, is presented for purposes of complying with the requirements of Rural Housing Services, and is also not a required part of the basic financial statements. Reports on compliance with laws and regulations and internal control are presented as additional supplemental information on pages 24-28. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

K.R. Broussard & Associates
Baton Rouge, Louisiana
March 15, 2004

INDEPENDENT AUDITOR’S REPORT

TO THE PARTNERS
ARCH DEVELOPMENT L.P.
14 Storrs Avenue -
Braintree, Massachusetts 02194

We have audited the accompanying balance sheet of Arch Development LP. (a Massachusetts limited partnership) as of December 31 2003, and the related statements of operations, partners’ capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above, present fairly, in all material respects, the financial position of Arch Development LP. as of December 31, 2003, the results of its operations, partners’ capital and cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Morris & Morris
March 2, 2004

INDEPENDENT AUDITOR’S REPORT

To the Partners
Clarke School Limited Partnership
Mansfield, Massachusetts

We have audited the accompanying balance sheet of Clarke School Limited Partnership, Project No. RI T-93-001 as of December 31, 2003, and the related statements of operations, changes in partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of Clarke School Limited Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Clarke School Limited Partnership as of December 31, 2003, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 9, 2004 on our tests of Clarke School Limited Partnership’s compliance with certain provisions of laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information in the schedules (shown on pages 17 through 21) Is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

Restivo Monacelli LLP
Providence, RI
February 9, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Glen Place Apartments Limited Partnership

We have audited the accompanying balance sheet of Glen Place Apartments Limited Partnership, as of December 31, 2003, and the related statements of operations, partners’ equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Glen Place Apartments Limited Partnership as of December 31, 2003, and the results of its operations, changes in partners’ equity, and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

LARSON ALLEN, WEISHAIR & CO., LLP
Eau Claire, Wisconsin
January 15, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Harris Housing Limited Partnership
Mansfield, Massachusetts

We have audited the accompanying balance sheet of Harris Housing Limited Partnership (a Florida Limited Partnership) as of December 31, 2003, and the related statements of operations, changes in partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of Harris Housing Limited Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures In the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Harris Housing Limited Partnership as of December 31, 2003, and the results of its operations and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information included in the schedules (shown on pages 17 and 18) is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is stated, in all material respects, in relation to the financial statements taken as a whole.

Restivo Monacelli
Providence, RI
February 2, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
LEESVILLE ELDERLY APARTMENTS PARTNERSHIP
A LOUISIANA PARTNERSHIP IN COMMENDAM
Mansfield, Louisiana

We have audited the accompanying balance sheets of LEESVILLE ELDERLY APARTMENTS PARTNERSHIP, A LOUISIANA PARTNERSHIP IN COMMENDAM (the Partnership) as of December 31, 2003 and 2002, and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with generally accepted auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of LEESVILLE ELDERLY APARTMENTS PARTNERSHIP, A LOUISIANA PARTNERSHIP IN COMMENDAM as of December 31, 2003 and 2002, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with generally accepted accounting principles.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information presented in the Schedule of Expenses is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

PAILET, MEUNIER AND LEBLANC, LLP
Metairie, Louisiana
March 24, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Lockport Elderly Housing Apartments
A Louisiana Partnership in Commendam
Mansfield, Louisiana

We have audited the accompanying balance sheets of Lockport Elderly Housing Apartments, A Louisiana Partnership in Commendam (the Partnership) as of December 31, 2003 and 2002, and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lockport Elderly Housing Apartments, A Louisiana Partnership in Commendam as of December 31, 2003 and 2002, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with generally accepted accounting principles.

PAILET, MEUNIER AND LEBLANC, LLP
Metairie, Louisiana
March 25, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Natchitoches Elderly Apartments
A Louisiana Partnership in Commendam
Mansfield, Louisiana

We have audited the accompanying balance sheets of Natchitoches Elderly Apartments, A Louisiana Partnership in Commendam (the Partnership) as of December 31, 2003 and 2002, and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Natchitoches Elderly Apartments, A Louisiana Partnership in Commendam as of December 31, 2003 and 2002, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with generally accepted accounting principles.

PAILET, MEUNIER AND LEBLANC, LLP
Metairie, Louisiana
March 19, 2004

Independent Auditor’s Report

Partners
Prestonwood Associates,
A Limited Partnership

We have audited the accompanying balance sheet of PRESTONWOOD ASSOCIATES, A PARTNERSHIP as of December 31, 2003, and the related statements of operations, changes in partners’ capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these statements based on our audit. The financial statements of PRESTONWOOD ASSOCIATES, A PARTNERSHIP as of December 31, 2002 were audited by other auditors whose report dated February 5, 2003, expressed an unqualified opinion on those statements.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of PRESTONWOOD ASSOCIATES, A PARTNERSHIP as of December 31, 2003 and 2002, and the results of its operations, changes in partners’ equity, and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

HANKINS & COMPANY
Fort Smith, Arkansas
February 13, 2004

Independent Auditor’s Report

To the Partners
RICHMOND MANOR, LP

We have audited the accompanying balance sheets of Richmond Manor, LP as of December 31, 2002 and 2003, and the related statements of income, owner’s equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Richmond Manor, LP as of December 31, 2002 and 2003, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United State of America.

Howe & Associates, PC
Columbia, Missouri
February 23, 2004

Independent Auditor’s Report

To the Partners of
Rio Grande Apartments, Ltd.
Eagle Pass, Texas

I have audited the accompanying balance sheets of Rio Grande Apartments, Ltd, as of December 3l, 2003 and 2002, the related statements of operations, partners’ capital and cash flows for the years then ended These financial statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rio Grande Apartments, Ltd, as of December 31, 2002 and 2003, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United State of America.

My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages I-16 and I-17 is presented for purposes of additional analysis and I s not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

GWEN WARD, PC
Fort Worth, Texas
March 4, 2004

Independent Auditor’s Report

To the Partners
TROY ESTATES, LP

We have audited the accompanying balance sheets of Troy Estates, LP as of December 31, 2002 and 2003, and the related statements of income, owners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Troy Estates, LP as of December 31, 2002 and 2003, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United State of America.

Howe & Associates, PC
Columbia, Missouri
February 25, 2004

INDEPENDENT AUDITOR’S REPORT

To the Partners
Virginia Avenue Affordable Housing Limited Partnership

I have audited the accompanying balance sheets of Virginia Avenue Affordable Housing Limited Partnership as of December 31, 2003 and 2002, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Virginia Avenue Affordable Housing Limited Partnership as of December 31, 2003 and 2002, and the results of its operations, the changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Martin A. Starr, CPA
Bakersfield, CA
January 20, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners,
Vista Loma Limited Partnership

We have audited the accompanying balance sheets of Vista Loma Limited Partnership as of December 31, 2003 and 2002, and the related statements of income, changes in partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vista Loma Limited Partnership as of December 31, 2003 and 2002, and the results of its operations, changes in partners’ equity, and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards issued by the Comptroller General of the United States, we have also issued a report dated January 22, 2004, on our consideration of Vista Loma Limited Partnership’s internal control structure and a report dated January 22, 2004, on its compliance with laws and regulations.

KENNETH C. BOOTHE AND COMPANY, P.C.
Big Spring, Texas
January 22, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Vivian Elderly Apartments
A Louisiana Partnership in Commendam
Mansfield, Louisiana

We have audited the accompanying balance sheets of Vivian Elderly Apartments, A Louisiana Partnership in Commendam (the Partnership) as of December 31, 2003 and 2002, and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vivian Elderly Apartments, A Louisiana Partnership in Commendam as of December 31, 2003 and 2002, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with generally accepted accounting principles.

PAILET, MEUNIER AND LEBLANC, LLP
Metairie, Louisiana
March 9, 2004

Independent Auditor’s Report

To the Partners
Carrollton Villa, LP

We have audited the accompanying balance sheets of Carrollton Villa, LP as of December 31, 2002 and 2003, and the related statements of income, owners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Carrollton Villa, LP as of December 31, 2002 and 2003, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United State of America.

Howe & Associates, PC
Columbia, Missouri
February 23, 2004

Report of Independent Certified Public Accountants

To the Partners of
Community Dynamics – Plano, Ltd.

We have audited the accompanying balance sheets of Community Dynamics – Plano, TX (a Texas limited partnership) as of December 31, 2003 and 2002, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that out audits provide a reasonable basis for our opinion.

In our opinion. the financial statements referred to above present fairly, in all material respects, the financial position of Community Dynamics – Plano, Ltd. as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States.

Grant Thornton
Dallas, Texas
February 6, 2004

Report of Independent Certified Public Accountants

To the Partners of
Community Dynamics – Fort Worth, Ltd.

We have audited the accompanying balance sheets of Community Dynamics – Fort Worth, TX (a Texas limited partnership) as of December 31, 2003 and 2002, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that out audits provide a reasonable basis for our opinion.

In our opinion. the financial statements referred to above present fairly, in all material respects, the financial position of Community Dynamics – Forth Worth, Ltd. as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States.

Grant Thornton
Dallas, Texas
February 6, 2004

INDEPENDENT AUDITORS’REPORT

To the Partners
HEBBRONVILLE APARTMENTS, LTD.

We have audited the accompanying balance sheet of HEBBRONVILLE APARTMENTS, LTD., RES Project No. 50-024-721178368 as of December 31, 2003, and the related statements of operations, partners’ equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of HEBBRONVILLE APARTMENTS, LTD. as of December 31, 2002, were audited by other auditors whose report dated March 3, 2003 expressed an unqualified opinion on those statements.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards; issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of HEBBRONVILLE APARTMENTS, LTD. as of December 31, 2003, and the results of its operations, changes in partners’ equity (deficit) and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information presented on pages 15 through 21 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued our report dated March 19, 2004, on our consideration of HEBBRONVILLE APARTMENTS, LTD.’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and -should be read in conjunction with the report in considering the results of our audit.

Bond & Tousignant
Monroe, Louisiana
March 19, 2004

Independent Auditor’s Report

To the Partners
Holts Summit Square, LP

We have audited the accompanying balance sheets of Holts Summit Square, LP as of December 31, 2002 and 2003, and the related statements of income, owners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Holts Summit Square, LP as of December 31, 2002 and 2003, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United State of America.

Howe & Associates, PC
Columbia, Missouri
February 23, 2004

Independent Accountants’ Report on Financial Statements

Partners
Independence Properties I, A Limited Partnership
D/B/A Garden Walk of Independence
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Independent Properties I, A Limited Partnership, D/B/A Garden Walk of Independence as of December 31, 2003 and 2002, and the related statements of operations, partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respect, the financial position of Independence Properties I, A Limited Partnership, D/B/A Garden Walk of Independence as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 6, 2004, on our consideration of the Partnership’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

BKD LLP
Fort Smith, AR
February 6, 2004

INDEPENDENT AUDITORS REPORT

To the Partners
LONE STAR SENIORS APARTMENTS, LTD.

We have audited the accompanying balance sheets of LONE STAR SENIORS APARTMENTS, LTD., RHS Project No. 50-072-721219924 as of December 31, 2003, and the related statements of operations, partners’ equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of LONE STAR SENIORS APARTMENTS, LTD. as of December 31, 2002, were compiled by other accountants, and their report thereon, dated March 2, 2003, stated they did not audit or review those financial statements and accordingly, expressed no opinion or any other form of assurance on them.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. ~n audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of LONE STAR SENIORS APARTMENTS, LTD. as of December 31, 2003, and the results of its operations, changes in partners’ equity (deficit) and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated April 25, 2004, on our consideration of LONE STAR SENIORS APARTMENTS, LTD.’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with the report in considering the results of our audit.

Bond & Tousignant
Monroe, Louisiana
April 25, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
MARTINDALE APARTMENTS, LTD.

We have audited the accompanying balance sheet of MARTINDALE APARTMENTS, LTD., RHS Project No. 49-028-721177319 as of December 31, 2003, and the related statements of operations, partners’ equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of MARTINDALE APARTMENTS, LTD. as of December 31, 2002, were audited by other auditors whose report dated February 17, 2003, expressed an unqualified opinion on those statements.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of MARTINDALE APARTMENTS, LTD. as of December 31, 2003, and the results of its operations, changes in partners’ equity (deficit) and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 29, 2004, on our consideration of MARTINDALE APARTMENTS, LTD.’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with the report in considering the results of our audit.

Bond & Tousignant
Monroe, Louisiana
February 29, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Munford Village, Ltd.
Munford, Alabama

We have audited the accompanying balance sheets of Munford Village, Ltd., a limited partnership, RHS Project No.:01-061-631011774 as of December 31, 2003 and 2002, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Munford Village, Ltd., RHS Project No.:01-061-631011774 as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and 11 for the year ended December 31, 2003 and 2002, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 30, 2004 on our consideration of Munford Village, Ltd.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DONALD W. CAUSEY & ASSOCIATES, P.C.
Gadsden, Alabama
January 30, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Northpointe, L P.

We have audited the accompanying balance sheets of Northpointe, L.P. (the Partnership) as of December 31, 2003 and 2002, and the related statements of operations, partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Northpointe, LP., as of December 31, 2003 and 2002, and the results of its operations, changes in partners’ equity (deficit) and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, Is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Cochran, Head & Co., P C.
February 20, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Sherwood Knoll, Limited Partnership
Rainsville, Alabama

We have audited the accompanying balance sheets of Sherwood Knoll, Limited Partnership, a limited partnership, RHS Project No.: 01-025-631032411 as of December 31, 2003 and 2002, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sherwood Knoll, Limited Partnership, RHS Project No.:01-025-631032411 as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 through 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and 11 for the year ended December 31, 2003 and 2002, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 30, 2004 on our consideration of Sherwood Knoll, Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

DONALD W. CAUSEY & ASSOCIATES, P.C.
Gadsden, Alabama
January 30, 2004

INDEPENDENT AUDITORS REPORT

To the Partners
Summerset Housing Limited, L.P.
Valdosta, Georgia

We have audited the accompanying balance sheets of Summerset Housing, Limited, L.P. (a limited partnership), Federal ID No.: 58-1982979, as of December 31, 2003 and 2002, and the related statements of income, partners’ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in, the United States of America and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Summerset Housing Limited, L.P. as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also, issued a report dated January 22, 2004 on our consideration of Summerset Housing Limited, L.P.’s internal control structure and a report dated January 22, 2004 on its compliance with laws and regulations. These reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

HENDERSON & GODBEE, PC
Valdosta, GA
January 22, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Coralville Housing Associates Limited Partnership

We have audited the accompanying balance sheets of Coralville Housing Associates Limited Partnership as of December 31, 2005 and 2004 and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Coralville Housing Associates Limited Partnership as of December 31, 2005 and 2004 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Mayer, Hoffman McCann P.C.
Topeka, Kansas
January 30, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Deerfield Associates Limited Partnership
Columbia, Maryland

We have audited the accompanying balance sheets of Deerfield Associates Limited Partnership (RHS Project No. 54-084-0541479749) as of December 31, 2003, and the related statements of operations, partners’ equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statements of Deerfield Associates Limited Partnership as of and for the year ended December 31, 2002, were audited by other auditors whose report dated January 14, 2003 expressed an unqualified opinion on those statements.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures used in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the 2003 financial statements referred to above present fairly, in all material respects, the financial position of Deerfield Associates Limited Partnership (RHS Project No. 54-084-0541479749) as of December 31, 2003 and 2002 and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 16, 2004 on our consideration of Deerfield Associates Limited Partnership’s internal controls and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Aronson & Company
Rockville, MD
January 16, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Branson Christian County II LP

We have audited the accompanying balance sheets of Branson Christian County II, LP as of December 31, 2002 and 2003 and the related statements of income, owners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards that require that we planed and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Branson Christian County II, LP as of December 31, 2002 and 2003 and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Howe & Associates PC
Columbia, MO
January 31, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Branson Christian County LP

We have audited the accompanying balance sheets of Branson Christian County LP as of December 31, 2002 and 2003 and the related statements of income, owners’ equity and cash flows for the years then ended. These financials statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Branson Christian County LP as of December 31, 2002 and 2003, and results of its operations, changes in owners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Howe & Associates
Columbia, MO
January 31, 2004

INDEPENDENT AUDITORS’ REPORT

To the Partners
Lawrenceville Manor Limited Partnership

I have audited the accompanying balance sheets of Lawrenceville Manor Limited Partnership as of December 31, 2003 and 2002, and the related statements of operations, partners’ deficit and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with auditing standards generally accepted in the United States and Government Auditing Standards issued by the comptroller General of the United States and the U.S. Departments of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lawrenceville Manor Limited Partnership as of December 31, 2003 and 2002, and the results of its operations, changes in partners’ deficit and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued my report dated February 15, 2004 on my consideration of Lawrenceville Manor Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations

Thomas C. Cunningham
Bristol, VA
February 15, 2004

INDEPENDENT AUDITORS’ REPORT

TO the Partners
St. Croix Commons Limited Partnership

We have audited the accompanying balance sheet of St. Croix Commons Limited Partnership as of December 31, 2005 and the related statements of operations, partners’ equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that its is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of St. Croix Commons Limited Partnership as of December 31, 2005 and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied to the audit of basic financial statements and in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Larson, Allen, Weishair & Co.
Eau Claire, Wisconsin
January 25, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Lee Terrace Limited Partnership

I have audited the accompanying balance sheets of Lee Terrace Limited Partnership as of December 31, 2003 and 2002 and the related statements of operations, partners’ deficit and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with auditing standards generally accepted in the United States and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Departments of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lee Terrace Limited Partnership as of December 31, 2003 and 2002 and the results of its operations, changes in partners’ deficit and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued my report dated February 15, 2004 on my consideration of Lee Terrace Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations.

Thomas C. Cunningham
Bristol, VA
February 15, 2004

INDEPENDENT AUDITORS’ REPORT

The Partners
The Hearthside II Limited Dividend Housing Association Limited Partnership
(A Michigan Limited Partnership)
Kalamazoo, Michigan

We have audited the accompanying balance sheets of the Hearthside II Limited Dividend Housing Association Limited Partnership (a Michigan Limited Partnership), as of December 31, 2005 and 2004, and the related statements of operations, partners’ equity/(deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that its is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Hearthside II Limited Dividend Housing Association Limited Partnership, as of December 31, 2005 and 2004 and the results of its operations, changes in partners’ equity/(deficit) and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 17 and 18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Schoonover, Boyer & Associates
Columbus, Ohio
January 26, 2006

EX-31.(A) 4 b61524bcexv31wxay.htm EX-31.(A) SECTION 302 CERTIFICATION EX-31.(A) Section 302 Certification

Exhibit 31.a

I, John P. Manning, certify that:

1. I have reviewed this annual report on Form 10-K of Boston Capital Tax Credit Fund III L.P.;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


		/s/ John P. Manning

		John P. Manning
		Principal Executive Officer

Date: December 21, 2006

EX-31.(B) 5 b61524bcexv31wxby.htm EX-31.(B) SECTION 302 CERTIFICATION EX-31.(B) Section 302 Certification

Exhibit 31.b

I, Marc Teal, certify that:

1. I have reviewed this annual report on Form 10-K of Boston Capital Tax Credit Fund III L.P.;

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


		/s/ Marc N. Teal

		Marc N. Teal,
		Principal Financial Officer

Date: December 21, 2006

EX-32.(A) 6 b61524bcexv32wxay.htm EX-32.(A) SECTION 906 CERTIFICATION EX-32.(A) Section 906 Certification

EXHIBIT 32.a

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Boston Capital Tax Credit Fund III L.P. (the “Fund”) on Form 10-K for the period ended March 31, 2006 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John P. Manning, Principal Executive Officer of the general partner of the general partner of the Partnership’s general partner, C&M Management Inc., certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge, after due inquiry:

(1) The Report fully complies with the requirements of section 13(a)-15 or 15(d)-15 of the Securities and Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Partnership.


		By:		/s/ John P. Manning

				John P. Manning
				Principal Executive Officer

Date: December 21, 2006

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.(B) 7 b61524bcexv32wxby.htm EX-32.(B) SECTION 906 CERTIFICATION EX-32.(B) Section 906 Certification

EXHIBIT 32.b

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Boston Capital Tax Credit Fund III L.P. (the “Fund”) on Form 10-K for the period ended March 31, 2006 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Marc N. Teal, Principal Financial Officer of the general partner of the general partner of the Partnership’s general partner, C&M Management Inc., certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge, after due inquiry:

(1) The Report fully complies with the requirements of section 13(a)-15 or 15(d)-15 of the Securities and Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Partnership.


		By:		/s/ Marc N. Teal

				Marc. N. Teal
				Principal Financial Officer

Date: December 21, 2006

A signed original of this written statement required by Section 906, or other
document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request.

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